Delaware County, Indiana - Notes to Required Supplementary Information

Financial Reporting - Pension Plans

Public Employees Retirement Fund

Valuation Date:

Assets:

June 30, 2025

Liabilities:

June 30, 2024 - Member census data as of June 30, 2024, was used in the valuation and adjusted, where appropriate, to reflect changes between June 30, 2024, and June 30, 2025.

Standard actuarial roll forward techniques were then used to project the total pension liability computed as of June 30, 2024, to the June 30, 2025, measurement date.

Actuarial Cost Method:

Entry Age Normal (Level percent of payroll)

Experience Study Date:

Period of five years ended June 30, 2024

Investment Rate of Return:

6.25%, net of investment expense, including inflation

Cost of Living Increases:

2026-2029 - Annual 13th checks, Beginning July 1, 2029 -
For members retired before 7/1/2029 - indexed 13th check,
For members retired on or after 7/1/2029 - 1% COLA

Salary increases, including inflation:

2.90% - 8.90% for five years, then 2.65% - 8.65%

Inflation:

2.00%

Mortality:

Healthy:

Pub-G2010 Public Retirement Plans Mortality Tables with a fully generational projection of mortality improvements using SOA Scale MP-2019.

Disability:

Pub-G2010 Public Retirement Plans Mortality Tables with a fully generational projection of mortality improvements using SOA Scale MP-2019.

The funding policy is available online at: https://www.in.gov/inprs/files/INPRS_Funding_Policy.pdf

Changes in Assumptions: The COLA assumption was revised following the passage of HEA 1221-2025. 13th checks for fiscal years 2027-2029 are assumed to be paid at the typical historical levels. The range of the future salary increase assumption was increased to 2.90% to 8.90% for the five-year period ending June 30, 2030, returning to 2.65% to 8.65% thereafter. The disability assumption was updated based on recent experience.

Changes in Actuarial Methods: Decrements are now assumed to occur at the middle of the year.

Plan Amendments: A 13th check, reduced approximately 5% from historical levels, to be paid in fiscal year 2026 was granted. For the actuarial valuation as of June 30, 2025, the timing of the postretirement benefit increase assumption was changed due to the passage of House Enrolled Act No. 1221. The act requires supplemental benefit funding for an inflation-indexed 13th check for participants who commence prior to July 1, 2029, and a 1% COLA for commencements thereafter. No additional benefits have yet been granted beyond this fiscal year 2026 13th check.