b'City of Dover Tuscarawas County, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2018 Actuarial AssumptionsOPERSActuarial valuations of an ongoing plan involve estimates of the values of reported amounts and assumptions about the probability of occurrence of events far into the future.Examples include assumptions about future employment, mortality, and cost trends.Actuarially determined amounts are subject to continual review or modification as actual results are compared with past expectations and new estimates are made about the future.Projectionsofbenefitsforfinancialreportingpurposesarebasedonthesubstantiveplan(theplanas understood by the employers and plan members) and include the types of benefits provided at the time of each valuation.The total pension liability was determined by an actuarial valuation as of December 31, 2017,usingthefollowingactuarialassumptionsappliedtoallperiodsincludedinthemeasurementin accordance with the requirements of GASB 67.Key methods and assumptions used in the latest actuarial valuation, reflecting experience study results, prepared as of December 31, 2017, are presented as follows: OPERS Traditional Plan OPERS Combined PlanWage Inflation 3.25 percent 3.25 percentFuture Salary Increases,3.25 to 10.75 percent 3.25 to 8.25 percent including inflation including wage inflation including wage inflationCOLA or Ad Hoc COLA:Pre-January 7, 2013 Retirees 3 percent, simple 3 percent, simplePost-January 7, 2013 Retirees 3 percent, simple through 2018,3 percent, simple through 2018, then 2.15 percent, simple then 2.15 percent, simpleInvestment Rate of Return 7.5 percent 7.5 percentActuarial Cost Method Individual Entry Age Individual Entry Age Pre-retirement mortality rates are based on the RP-2014 Employees mortality table for males and females, adjusted for mortality improvement back to the observation period base year of 2006.The base year for males and females was then established to be 2015 and 2010, respectively.Post-retirement mortality rates are based on the RP-2014 Healthy Annuitant mortality table for males and females, adjusted for mortality improvement back to the observation period base year of 2006.The base year for males and females was then established to be 2015 and 2010, respectively. Post-retirement mortality rates for disabled retirees are based on the RP-2014 Disabled mortality table for males and females, adjusted for mortality improvement back to the observation period base year of 2006.The base year for males and females was then established to be 2015 and 2010, respectively.Mortality rates for a particular calendar year are determined by applying the MP-2015 mortality improvement scale to all of the previously described tables.The most recent experience study was completed for the five year period ended December 31, 2015.The long-term rate of return on defined benefit investment assets was determined using a building-block method in which best-estimate ranges of expected future real rates of return are developed for each major asset class.These ranges are combined to produce the long-term expected real rate of return by weighting the expected future real rates of return by the target asset allocation percentage, adjusted for inflation.During 2017, OPERS managed investments in three investment portfolios:the Defined Benefit portfolio, the Health Care portfolio, and the Defined Contribution portfolio.The Defined Benefit portfolio contains the investment assets for the traditional pension plan, the defined benefit component of the combined plan and the annuitized accounts of the member-directed plan.Within the Defined Benefit portfolio, contributions into the plans are all recorded at the same time, and benefit payments all occur on the first of the month.- 62 63 -'