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Indian River County, Florida Notes To Financial Statements Year Ended September 30, 2020 NOTE 13 - RETIREMENT PLAN - Continued Pension Plan - Continued Asset Class Cash Fixed Income Global Equity Real Estate (Property) Private Equity Strategic Investments Total Assumed inflation -mean Annual Target Arithmetic Allocation Return 1% 2.2% 19% 3.0% 54.2% 8.0% 10.3% 6.4% 11.1% 10.8% 4.4% 5.5% 100% Compound Annual (Geometric) Return 2.2% 2.9% 6.7% 5.8% 8.1% 5.3% Standard Deviation 1.2% 3.5% 17.1% 11.7% 25.7% 6.9% 2.4% 1.7% Discount Rate for Pension Plan: The discount rate used to measure the total pension liability was 6.80%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that the County's contributions will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Pension Plan's fiduciary net position was projected to be available to make all projected future benefit payments of current active and inactive employees if future experience follows assumptions and the actuarially determined contribution is contributed in full each year. Therefore, the discount rate for calculation of the total pension liability is equal to the long-term expected rate of return. Sensitivity of the County's Proportionate Share of the Net Position Liability to Changes in the Discount Rate for the Pension Plan: The following presents the County's proportionate share of the net pension liability (NPL) of the Pension Plan calculated using the discount rate of 6.80%. Also presented is what the County's proportionate share of the FRS plan NPL would be if it were calculated using a discount rate that is 1% tower or 1% higher than the current rate: 1% Decrease (5.80%) Current Discount 1% Increase Rate (6.80%) (7.80%) County's proportionate share of NPL $ 250,648,853 $ 156,966,332 $ 78,722,283 89