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il _0 441111 <br />Notes to the Financial Statements <br />June 30, 2020 <br />D. California Public Employees' Retirement System (CaIPERS) Pension Plan (continued) <br />Actuarial assumptions <br />The total pension liability in the June 30, 2018 actuarial valuations were determined using the <br />following actuarial assumptions: <br />Valuation date <br />Measurement date <br />Actuarial cost method <br />Asset valuation method <br />Actuarial assumptions: <br />Discount rate <br />Inflation <br />June 30, 2018 <br />June 30, 2019 <br />Entry -Age Normal Cost Method <br />Market value of assets <br />7.15% <br />2.50% <br />Projected salary increase Varies by entry age and service <br />The lesser of contract COLA or 2.50% until Purchasing <br />Power Protection Allowance floor on purchasing power <br />Mortality (1) <br />applies, 2.50% thereafter. <br />(1) The mortalitytable used was developed based on CaIPERS' specific data. The probabilities of mortality <br />are based on the 2017 CaIPERS Experience Studyfor the period from 1997 to 2015. Pre -retirement and <br />Post-retirement mortality rates include 15 years of projected mortality improvementusing 90% of Scale <br />MP -2016 published by the Society of Actuaries. Form ore details on this table, please refer to the CaIPERS <br />Experience Study and Review of Actuarial Assumptions report from Decem be r2017 that can be found on <br />the CaIPERS website. <br />All other actuarial assumptions used in the June 30, 2018 valuation were based on the results <br />of an actuarial experience study for the period from 1997 to 2015, including updates to salary <br />increase, mortality and retirement rates. The Experience Study report can be obtained at <br />CaIPERS' website, at www.calpers.ca.gov. <br />Discount rate <br />The discount rate used to measure the total pension liability was 7.15 percent. The projection <br />of cash flows used to determine the discount rate assumed that contributions from plan <br />members will be made at the current member contribution rates and that contributions from <br />employers will be made at statutorily required rates, actuarially determined. Based on those <br />assumptions, the Plan's fiduciary net position was projected to be available to make all <br />projected future benefit payments of current plan members. Therefore, the long-term expected <br />rate of return on plan investments was applied to all periods of projected benefit payments to <br />determine the total pension liability. <br />M <br />