City of Raleigh
$14,237,418 reported as deferred outflows of resources related to pensions resulting from City contributions
subsequent to the measurement date will be recognized as an increase of the net pension asset in the year ended
June 30, 2017.
Other amounts reported as deferred inflows of resources related to pensions will be recognized in pension
expense as follows:
Ending June 30
The total pension liability in the December 31, 2014 actuarial valuation was determined
using the following actuarial assumptions, applied to all periods included in the measurement:
Investment rate of return
4.25 to 8.55 percent inflating and productivity factor
7.25 percent, net of pension plan investment expense
The plan currently uses mortality tables that vary by age, gender, employee group (i.e. general, law enforcement
officer) and health status (i.e. disabled and healthy). The current mortality rates are based on published tables and
based on studies that cover significant portions of the U.S. population. The healthy mortality rates also contain a
provision to reflect future mortality improvements.
The actuarial assumptions used in the December 31, 2014 valuation were based on the results of an actuarial
experience study for the period January 1, 2005 through December 31, 2009.
Future ad hoc COLA amounts are not considered to be substantively automatic and are therefore not included in
The projected long‐term investment returns and inflation assumptions are developed through review of current
and historical capital markets data, sell‐side investment research, consultant whitepapers, and historical
performance of investment strategies. Fixed income return projections reflect current yields across the U.S.
Treasury yield curve and market expectations of forward yields projected and interpolated for multiple tenors and
over multiple year horizons. Global public equity return projections are established through analysis of the equity
risk premium and the fixed income return projections. Other asset categories and strategies’ return projections
reflect the foregoing and historical data analysis. These projections are combined to produce the long‐term
expected rate of return by weighting the expected future real rates of return by the target asset allocation
percentage and by adding expected inflation.