Comprehensive Annual Financial Report - Fiscal Year ended 6/30/2017

City of Raleigh Schedule of Employer Contributions June 30, 2017 2017 2016 Actuarially determined contribution 16,538,686 $ 14,084,837 $ Contributions in relation to the actuarially determined contribution 14,434,837 13,949,558 Contribution deficiency (excess) 2,103,849 $ 135,279 $ Covered payroll* 182,145,153 $ 182,145,153 $ Contributions as a percentage of covered payroll 7.92% 7.66% Notes to schedule Valuation Date: 6/30/2016 Actuarially determined contribution rates are calculated as of June 30, one year prior to the end of the fiscal year in which contributions are reported. Methods and assumptions used to determine contribution rates: Actuarial cost method Projected unit credit Amortization method level percentage of pay Amortization period 23 years, closed Asset valuation method Market value of assets Inflation 3.00% Healthcare cost trend rates 7.75% for 2016 decreasing to an ultimate rate of 5.00% by 2022 Salary increases General Employees 3.50% - 7.75% Firefighters 3.50% - 7.75% Law Enforcement Officers 3.50% - 7.35% Investment rate of return 7.00% Retirement age: In the 2017 actuarial valuation, assumed life expectancies were adjusted as a result of adopting the RP-2014 Healthy Annuitant Mortality Table In prior years, those assumptions were based on the 1994 Group Annuity Mortality table. Mortality: In the 2017 actuarial valuation, assumed life expectancies were adjusted as a result of adopting the RP-2014 Healthy Annuitant Mortality Table In prior years, those assumptions were based on the 1994 Group Annuity Mortality table. City of Raleigh _____________________________________________________________ Financial Section ____________________________________________________________ __________________________________________________________ 72 __________________________________________________________

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