b'City of Dover Tuscarawas County, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2019 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 2018, 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 theplansareallrecordedatthesametime,andbenefitpaymentsalloccuronthefirstofthemonth.Accordingly,themoney-weightedrateofreturnisconsideredtobethesameforallplanswithinthe portfolio. The annual money-weighted rate of return expressing investment performance, net of investment expenses and adjusted for the changing amounts actually invested, for the Defined Benefit portfolio was a loss of 2.94 percent for 2018.The allocation of investment assets with the Defined Benefit portfolio is approved by the Board of Trustees as outlined in the annual investment plan.Plan assets are managed on a total return basis with a long-term objective of achieving and maintaining a fully funded status for the benefits provided through the defined benefit pension plans.The following table displays the Board-approved asset allocation policy for 2018 and the long-term expected real rates of return:Weighted AverageLong-Term ExpectedTarget Real Rate of ReturnAsset Class Allocation (Arithmetic)Fixed Income 23.00 % 2.79 %Domestic Equities 19.00 6.21Real Estate 10.00 4.90Private Equity 10.00 10.81International Equities 20.00 7.83Other Investments 18.00 5.50Total 100.00 % 5.95 % Discount RateFor 2018, the discount rate used to measure the total pension liability was 7.2 percent for the traditional plan and the combined plan. For 2017, the discount rate used to measure the total pension liability was7.5percentforthetraditionalplanandthecombinedplan.Theprojectionofcashflowsusedto determine thediscountrateassumedthatcontributionsfromplanmembersandthoseofthecontributing - 63 63 -'