
Actuarial Cost Method
 Decrements
 PreRetirement Mortality
Representative values of the assumed annual rates of preretirement mortality among members in active service are as follows:
Age 
Ordinary Mortality Rate 
Service Mortality Rate 
Age 
Ordinary Mortality Rate 
Service Mortality Rate 
20
25
30
35 
.0017
.0018
.0020
.0030 
.0002
.0004
.0005
.0005 
40
45
50
54 
.0043
.0055
.0077
.0103 
.0005
.0006
.0009
.0003 

PostRetirement Healthy Mortality
1983 Group Annuity Mortality Table

PostRetirement Disabled Mortality
1983 Group Annuity Mortality Table

Disability
Representative values of the assumed annual rates of disability among members in active service are as follows:
Age 
Ordinary Disability Rate 
Service Disability Rate 
Age 
Ordinary Disability Rate 
Service Disability Rate 
20
25
30
35 
.0004
.0006
.0009
.0012 
.0003
.0005
.0007
.0010 
40
45
49

.0018
.0032
.0050

.0014
.0026
.0040

Retirement
Members are assumed to retire at the earlier of 55 years old or when they attain 22 years.

Withdrawal from Active Status
Representative values of the assumed annual rates of withdrawal among members in active service are as follow
Age 
Rate 
Age 
Rate 
20 
10.30% 
35 
1.82% 
25 
7.30% 
40 
0.99% 
30 
4.15% 
45 
0.48% 

Interest Rates
 Used for Calculating All Liabilities (including GASB 25/27 liabilities)
8.00% per annum

Salary Increases
 Individual Compensation
Representative values of the assumed annual rates of future salary increase are as follows:
(average assumed annual rate is 5.7%)
Age

Rate

Age

Rate

20 
10.67% 
40 
5.10% 
25 
8.80% 
45 
5.03% 
30 
6.25% 
50 
5.06% 
35 
5.30% 
55 
5.12% 

Marriage Assumptions

Expenses
The normal contribution rate is increased by anticipated noninvestment expenses. The anticipated expenses for the 2006/2007 plan year are $400,000.

Assets
The Actuarial Value of Assets is equal to the Market Value of Assets adjusted to reflect a fiveyear phasein of the difference between the expected return on Actuarial Value of Assets and the actual investment return.
The following assumptions have been changed during the last few plan years:

Effective October 1, 1997:
The postretirement mortality table was changed to the 1983 Group Annuity Mortality Table.

Effective October 1, 1999:

The actuarial value of assets reflects a “fresh start” at market value, beginning a new fiveyear phasein of gains and losses.

The actuarial cost method was changed from frozen entry age to entry age.
 Effective October 1, 2006:
 The retirement decrement was changed to the earlier of age 55 or attainment of 22 years of service. This assumption has been changed to better reflect anticipated retirement behavior as a result of the change in plan provisions effective October 1, 2006.
 The percentage of active members assumed married was changed from 95% to 75%. This assumption was changed after a review of the marital status of recent retirees and current active members.
 On October 1, 2006, the Actuarial Value of Assets was changed to be equal to the Market Value of Assets, adjusted to reflect a fiveyear phasein of the difference between the expected return on Actuarial Value of Assets and the actual investment return. The new method was applied retroactively so that five years of excess returns are smoothed in 2006. The prior Actuarial Value of Assets was equal to the Market Value of Assets adjusted to reflect a fiveyear phasein of the net investment gain or loss.
 It is assumed that members who enter the DROP on or after October 1, 2006 will participate in the DROP for eight years. Therefore, the COLA payment to these members will be deferred eight years.
* Note: Assumption changes that have first been reflected in this valuation are shown in bold print.