City of Oakwood, Ohio - Notes to the Basic Financial Statements

employee and any applicable contingent annuitant. In many cases, actuarial calculations reflect several decades of service with the employer and the payment of benefits after termination.

Key methods and assumptions used in the latest actuarial valuation, reflecting experience study results, are presented below.

Valuation Date	January 1, 2023, with actuarial liabilities rolled forward to December 31, 2023
Actuarial Cost Method	Entry Age Normal
Investment Rate of Return	7.5 percent
Projected Salary Increases	3.50 percent to 10.5 percent
Payroll Growth	3.25 percent
Blended discount rate:
Current measurement date	4.07 percent
Prior measurement date	4.27 percent
Cost of Living Adjustments	2.2 percent simple per year
Projected Depletion Year of OPEB Assets	2038

Mortality for service retirees is based on the Pub‐2010 Below‐Median Safety Amount‐Weighted Healthy Retiree mortality table with rates adjusted by 96.2 percent for males and 98.7 percent for females. All rates are projected using the MP‐2021 Improvement Scale.

Mortality for disabled retirees is based on the Pub‐2010 Safety Amount‐Weighted Disabled Retiree mortality table with rates adjusted by 135.0 percent for males and 97.9 percent for females. All rates are projected using the MP‐2021 Improvement Scale.

Mortality for contingent annuitants is based on the Pub‐2010 Below‐Median Safety Amount‐Weighted Contingent Annuitant Retiree mortality table with rates adjusted by 108.9 percent for males and 131.0 percent for females. All rates are projected using the MP‐2021 Improvement Scale.

Mortality for active members is based on the Pub‐2010 Below‐Median Safety Amount‐Weighted Employee mortality table. All rates are projected using the MP‐2021 Improvement Scale.

The most recent experience study was completed for the five year period ended December 31, 2021.

The long‐term expected rate of return on OPEB plan investments was determined using a building‐block approach and assumes a time horizon, as defined in the Statement of Investment Policy. A forecasted rate of inflation serves as the baseline for the return expected. Various real return premiums over the baseline inflation rate have been established for each asset class. The long‐term expected nominal rate of return has been determined by calculating a weighted averaged of the expected real return premiums for each asset class, adding the projected inflation rate and adding the expected return from rebalancing uncorrelated asset classes.

Best estimates of the long‐term expected geometric real rates of return for each major asset class included in OP&F’s target asset allocation as of December 31, 2023, are summarized below: