The mortality table used for active members was a Pub-2010 General Mortality table, for the Nonhazardous System, and the Pub-2010 Public Safety Mortality table for the Hazardous System, projected with the ultimate rates from the MP-2014 mortality improvement scale using a base year of 2010. The mortality table used for healthy retired members was a system-specific mortality table based on mortality experience from 2013-2022, projected with the ultimate rates from MP-2020 mortality improvement scale using a base year of 2023. The mortality table used for the disabled members was PUB-2010 Disabled Mortality table, with rates multiplied by 150% for both male and female rates, projected with the ultimate rates from the MP-2020 mortality improvement scale using a base year of 2010.
The long-term expected rate of return was determined using a building-block method in which best-estimate ranges of expected future real rates of returns are developed for each asset class. The ranges are combined by weighting the expected future real rate of return by the target asset allocation percentage.
The net pension liability as of June 30, 2023, is based on the June 30, 2022, actuarial valuation rolled-forward. Deferred outflows and inflows related to differences between projected and actual earnings on plan investments are netted and amortized over a closed five-year period.
The target asset allocation and best estimates of arithmetic nominal rates of return for each major asset class are summarized in the following table:
| Hazardous | Nonhazardous | |||
| Asset Class | Target Allocation | Long-Term Nominal Rate of Return | Target Allocation | Long-Term Nominal Rate of Return |
|---|---|---|---|---|
| Public Equity | 43.50 % | 5.90 % | 32.50 % | 5.90 % |
| Private Equity | 10.00 | 11.73 | 7.00 | 11.73 |
| Core Fixed Income | 10.00 | 2.45 | 20.50 | 2.45 |
| Specialty Credit | 15.00 | 3.65 | 15.00 | 3.65 |
| Cash | 1.50 | 1.39 | 5.00 | 1.39 |
| Real Estate | 10.00 | 4.99 | 10.00 | 4.99 |
| Real Return | 10.00 | 5.15 | 10.00 | 5.15 |
| Total | 100.00 % | 100.00 % | ||
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