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NOTE 8 — DEFINED BENEFIT PENSION PLANS — STATE-WIDE (CONTINUED) E. Actuarial Assumptions The total pension liability in the June 30, 2019, actuarial valuation was deteiniined using an individual entry -age noinial actuarial cost method and the following actuarial assumptions: Inflation 2.50% per year Active Member Payroll Growth 3.25% per year Investment Rate of Return 7.50% Salary increases were based on a service -related table. Mortality rates for active members, retirees, survivors and disabilitants for all plans were based on RP-2014 tables for males or females, as appropriate, with slight adjustments to fit PERA's experience. Cost of living benefit increases after retirement for retirees are assumed to be 1.25 percent per year for GERF and 1 percent per year for PEPFF. Actuarial assumptions used in the June 30, 2019, valuation were based on the results of actuarial experience studies. The most recent six -year experience study in the GERF was completed in 2019. The most recent four-year experience study for PEPFF was completed in 2016. Economic assumptions were updated in 2018 based on a review of inflation and investment return assumptions. The following changes in actuarial assumptions occurred in 2019: 1. GERF: • The mortality projection scale was changed from MP-2017 to MP-2018. 2. PEPFF: • The mortality projection scale was changed from MP-2017 to MP-2018 The following changes in plan provisions occurred in 2019: 1. GERF: • The employer supplemental contribution was changed prospectively, decreasing from $31.0 million to $21.0 million per year. The State's special funding contribution was changed prospectively, requiring $16.0 million due per year through 2031. The State Board of Investment, which manages the investments of PERA, prepares an analysis of the reasonableness on a regular basis of the long-teiui expected rate of return using a building-block method in which best -estimate ranges of expected future rates of return are developed for each major asset class. These ranges are combined to produce an expected long-teiui rate of return by weighting the expected future rates of return by the target asset allocation percentages. 84