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NOTE 10 — DEFINED BENEFIT PENSION PLANS — STATE-WIDE (CONTINUED) F. Actuarial Methods and Assumptions The total pension liability in the June 30, 2022, actuarial valuation was determined using an individual entry -age normal actuarial cost method. The long-term rate of return on pension plan investments used in the determination of total liability is 6.50%. This assumption is based on review of inflation and investments return assumptions from a number of national investment consulting firms. The review provided a range of return investment return rates deemed to be reasonable by the actuary. An investment return of 6.50% was deemed to be within that range of reasonableness for financial reporting purposes. Inflation is assumed to be 2 25% for the GERF and 2.25% for the PEPFF. Benefit increases after retirement are assumed to be 1.25% for the GERF. The PEPFF benefit increase is fixed at 1.00% per year and that increase was used in the valuation. Salary growth assumptions in the GERF range in annual increments from 10.25% after one year of service to 3.00% after 27 years of service. In the PEPFF, salary growth assumptions range from 11.75% after one year of service to 3.00% after 24 years of service. Mortality rates for the GERF are based on the Pub-2010 General Employee Mortality Table. Mortality rates for the PEPFF are based on the Pub-2010 Public Safety Employee Mortality tables. The tables are adjusted slightly to fit the PERA's experience. Actuarial assumptions for the GERF are reviewed every four years. The most recent four-year experience study for the GERF was completed in 2019. The assumption changes were adopted by the Board and became effective with the July 1, 2020 actuarial valuation. The most recent four-year experience study for the PEPFF was completed in 2020, adopted by the Board, and became effective with the July 1, 2021 actuarial valuation. The following changes in actuarial assumptions occurred in 2022: 1. GERF: • The mortality improvement scale was changed from Scale MP-2020 to Scale MP-2021. 2. PEPFF: • The mortality improvement scale was changed from Scale MP-2020 to Scale MP-2021. • The single discount rate changed from 6.50% to 5.40%. 87