b'City of Dover Tuscarawas County, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2018 Projections of benefits for financial reporting purposes are based on the substantive plan and include the types of coverage provided at the time of each valuation and the historical pattern of sharing of costs between OPERSandplanmembers.ThetotalOPEBliabilitywasdeterminedbyanactuarialvaluationasof December 31, 2016, rolled forward to the measurement date of December 31, 2017.The actuarial valuation usedthefollowingactuarialassumptionsappliedtoallpriorperiodsincludedinthemeasurementin accordance with the requirements of GASB 74:Wage Inflation 3.25 percentProjected Salary Increases,3.25 to 10.75 percent including inflation including wage inflationSingle Discount Rate:Current measurement date 3.85 percentPrior measurement date 4.23 percentInvestment Rate of Return 6.50 percentMunicipal Bond Rate 3.31 percentHealth Care Cost Trend Rate 7.5 percent, initial3.25 percent, ultimate in 2028Actuarial Cost Method 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 expected rate of return on health care 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 rangesare combined to produce the long-term expected real rate of return by weightingtheexpectedfuturerealratesofreturnbythetargetassetallocationpercentage,adjustedfor inflation.During 2017, OPERS managed investments in three investment portfolios:the Defined Benefit portfolio, the Health Care portfolio and the Defined Contribution portfolio.The Health Care portfolio includes the assets for health care expenses for the traditional pension plan, combined plan and member-directed plan eligible members.WithintheHealthCareportfolio,contributionsintotheplansareassumedtobereceived continuously throughout the year based on the actual payroll payable at the time contributions are made, and healthcare-relatedpaymentsareassumedtooccurmid-year.Accordingly,themoney-weightedrateof return is considered to be the same for all plans within the portfolio.The annual money-weighted rate of returnexpressinginvestmentperformance,netofinvestmentexpensesandadjustedforthechanging amounts actually invested, for the Health Care portfolio is 15.2 percent for 2017.- 70 71 -'