Delaware County, Indiana
Significant Actuarial Assumptions
Key methods and assumptions used in calculating the total pension liability in the latest actuarial valuations are presented below:
| Measurement Date | December 31, 2025 |
| Valuation Date | |
| Assets | December 31, 2025 |
| Liabilities | December 31, 2025, Actual member census data as of December 31, 2025 was used in the valuation |
| Inflation Rate | 3.00% per annum |
| Future Salary increases | 4.00% per annum, (3.00% for inflation and 1.00% for seniority) |
| Investment Rate of Return | 6.50%, net of pension plan investment expenses, including inflation |
| Cost of Living | 2.00% per annum (3.00% per annum for participants hired before October 4, 2010 |
| Mortality Assumption | Pub-2016 Safety Amount-Weighted Mortality Projected Generationally with Scale MP-2021 (separate employee, retiree, contingent survivor and disabled retiree tables and male & female tables) |
Discount Rate
The discount rate used to measure the total pension liability was 6.50% as of December 31, 2025 and is equal to the long-term expected return on plan investments. The projected cash flows used to determine the discount rate assumed that employer contributions would be made at the actuarially calculated rate computed in accordance with IC 38-8-10-12(e) to prevent the deterioration in the actuarial status of the trust. The future contribution assumption was based upon review of recent employer contribution history compared to the corresponding actuarially determined contributions. Based on this assumption, the Plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members.
Sensitivity of the County's Proportionate Share of the Net Pension Liability to Changes in the Discount Rate
The following presents the net pension liability of the plan, calculated using the discount rate of 6.50%, as well as what the plan's net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (5.50%) or 1-percentage-point higher (7.50%) than the current rate:
Scroll horizontally to view all discount-rate columns.
| Description | 1% Decrease to Discount Rate (5.50%) |
Current Discount Rate (6.50%) |
1% Increase to Discount Rate (7.50%) |
|---|---|---|---|
| Total pension liability | $35,682,795 | $31,667,558 | $28,348,812 |
| Plan fiduciary net position | (25,630,331) | (25,630,331) | (25,630,331) |
| Total | $10,052,464 | $6,037,227 | $2,718,481 |