KENTUCKY STATE UNIVERSITY SCHEDULE OF THE UNIVERSITY'S (KSU) PROPORTIONATE SHARE OF THE NET PENSION LIABILITY KENTUCKY EMPLOYEES' RETIREMENT SYSTEM June 30, 2018 (Amounts in thousands)

Non-hazardous

2018 2017 2016 2015

KSU's proportion of the net pension liability $ 32,618 $ 29,146 $ 29,408 $ 28,555

KSU's proportionate share of the net pension liability 0.24% 0.26% 0.29% 0.32%

KSU's covered payroll $ 3,888 $ 4,321 $ 5,390 $ 5,453

KSU's proportionate share of the net pension liability as a share of its covered payroll 838.94% 674.52% 545.60% 523.66%

Plan fiduciary net position as a percentage of total pension liability 13.30% 14.80% 18.83% 22.32%

Hazardous

2018

KSU's proportion of the net pension liability $ 237

KSU's proportionate share of the net pension liability 0.05%

KSU's covered payroll $ 79

KSU's proportionate share of the net pension liability as a share of its covered payroll 300.00%

Plan fiduciary net position as a percentage of total pension liability 54.80%

Changes in Assumptions: For fiscal year 2017, the demographic and economic assumptions that affect the measurement of the total pension liability have been updated as follows:

• The assumed investment rate of return was decreased from 6.75% to 5.25% (Non-hazardous) and 7.50% to 6.25% (Hazardous).
• The assumed rate of inflation was reduced from 3.25% to 2.30%.
• Payroll growth assumption was reduced from 4.00% to 3.05%.

Note: This table represents data that is one year in arrears.

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