b'City of Dover Tuscarawas County, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2018 Age Police Fire59 or less 35 % 35 %60-69 60 4570-79 75 7080 and up 100 90 For the January 1, 2016, valuation, rates of death were based on the RP-2000 Combined Table, age-adjusted as follows.For active members, set back six years. For disability retirements, set forward five years for police and three years for firefighters. For service retirements, set back zero years for police and two years for firefighters. For beneficiaries, set back zero years. The rates are applied on a fully generational basis, with a base year of 2009, using mortality improvement Scale AA.The most recent experience study was completed for the five year period ended December 31, 2016; the prior experience study was completed December 31, 2011.The long-term expected rate of return on pension plan investments was determined using a building-block approach and assumes a time horizon, as defined in the Statement of Investment Policy.A forecasted rate of inflation serves as the baseline for the return expected.Various real return premiums over the baseline inflation rate have been established for each asset class.The long-term expected nominal rate of return has been determined by calculating a weighted average of the expected real return premiums for each asset class, addingtheprojectedinflationrateandaddingtheexpectedreturnfromrebalancinguncorrelatedasset classes.Best estimates of the long-term expected geometric real rates of return for each major asset class included in OP&Fs target asset allocation as of December 31, 2017, are summarized as follows:Target Long-Term ExpectedAsset Class Allocation Real Rate of ReturnCash and Cash Equivalents - % 0.00 %Domestic Equity 16.00 5.21Non-US Equity 16.00 5.40Core Fixed Income * 20.00 2.37Global Inflation Protected Securities* 20.00 2.33High Yield 15.00 4.48Real Estate 12.00 5.65Private Markets 8.00 7.99Timber 5.00 6.87Master Limited Partnerships 8.00 7.36Total 120.00 %Note:Assumptions are geometric.* levered 2x OP&Fs Board of Trustees has incorporated the risk parity concept into OP&Fs asset liability valuation with the goal of reducing equity risk exposure, which reduces overall Total Portfolio risk without sacrificing return,andcreatingamorerisk-balancedportfoliobasedontherelationshipbetweenassetclassesand economic environments. From the notional portfolio perspective in the preceding table, the Total Portfolio may be levered up to 1.2 times due to the application of leverage in certain fixed income asset classes. - 65 66 -'