1. Actuarial Cost Method

   • Entry Age Normal Cost Method 

2. Decrements

   • Pre-Retirement Mortality
     Representative values of the assumed annual rates of pre-retirement mortality among members in active service are as follows:

• Post-Retirement Healthy Mortality
  1983 Group Annuity Mortality Table

• Post-Retirement 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:

• Permanent Withdrawal from Active Status and Retirement
  Representative values of the assumed annual rates of withdrawal and retirement among members in active service are set forth in the following table. In addition, 10% of active members are assumed to retire in the first year of eligibility for retirement.

Normal retirement age is assumed to occur between the minimum eligibility age and age 55. However, all remaining members are assumed to retire upon attaining 27 years of service, regardless of age.

3. Interest Rates

   • Used for Calculating All Liabilities (including GASB 25/27 liabilities)
     8.00% per annum
4. 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%)

• Aggregate Compensation
  The aggregate compensation used to compute the accrued liability contribution rate was assumed to increase at a rate of 3½% per year.

5. Marriage Assumptions
   • Percent Married
     95% of members are assumed married.
   • Age Difference Between Spouses
     Male spouses are assumed to be three years older than female spouses.
     
6. Expenses
   The normal contribution rate otherwise determined is increased by anticipated administrative expenses. The anticipated administrative expenses include investment expenses and commissions and, for the 2000/2001 plan year, are assumed to be equal to $400,000.
   
7. Assets
   Actuarial value of assets is equal to the market value of assets adjusted to reflect a five-year phase-in of the net investment gain or loss. As of October 1, 1999, the “fresh start method” using the current market value of assets and starting a new five-year phase-in of realized and unrealized gains and losses was implemented.

The following assumptions have been changed during the last few plan years:

1. Effective October 1, 1991:

   1. An additional 10% of active members were assumed to retire in the first year of eligibility for retirement and all members were assumed to retire upon attaining 27 years of service, regardless of age;

   2. The interest rate used to determine all liabilities was increased from 7.00% per annum to 8.00% per annum;

   3. The assumed annual rate of individual salary growth was increased from 5.00% to 5.50%; and

   4. The assumed annual rate of aggregate salary growth was increased from 3.00% to 3.50%.

2. Effective October 1, 1992:

   1. The post-retirement mortality table was changed to the 1979 George B. Buck Mortality Table; and

   2. The assumed annual rate of individual salary growth was changed from 5.50% at each age to the table of rates as set forth in Table XI, item 4.

3. Effective October 1, 1997:
   The post-retirement mortality table was changed to the 1983 Group Annuity Mortality Table.

4. Effective October 1, 1999:

   1. The actuarial value of assets reflects a “fresh start” at market value, beginning a new five-year phase-in of gains and losses.

   2. The actuarial cost method was changed from frozen entry age to entry age.

* Note: Assumption changes that have first been reflected in this valuation are shown in bold print.