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<br />I . <br /> <br />'II <br />" <br /> <br />City of Mooresville <br /> <br />June 17, 1985 <br /> <br />NYHART <br /> <br />EXHIBIT II <br />ACTUARIAL ASSUMPTIONS <br /> <br />One factor which will affect how closely the outlay approximates <br />the true cost is the extent to which the choice of actuarial assump- <br />tions is representative of how the actual future experience will <br />develop. As a basis for our calculations, we have made the follow· <br />ing assumptions: <br /> <br />Effecti ve Date: <br /> <br />January I, 1985 <br /> <br />Retirement Incidence: <br /> <br />At normal retirement age/ <br /> <br />Mortality Table: <br />Disability Table: <br />Withdrawal Rates: <br /> <br />1971 GAM <br /> <br />None <br /> <br />Aile <br />20 <br />30 <br />40 <br />SO <br />60 <br /> <br />Assumed Participant <br />Withdrawal Rate <br />5.4\ <br />5.1 <br />3.5 <br />0.4 <br />0.0 <br /> <br />Aile <br />20 <br />30 <br />40 <br />SO <br />60 <br /> <br />Ratio of Final Average <br />Earnings at Age 65 <br />to Current Earninlls <br />3.46 <br />2.58 <br />1. 92 <br />1.43 <br />1.06 <br /> <br />Salary Projection Scale: <br /> <br />Equivalent to 3\ per year <br />increase <br /> <br />J <br /> <br />Net Annual Rate of <br />Investment Return <br /> <br />8\ <br /> <br />Expense and/or <br />Contingency Loading: <br /> <br />Actuarial Cost Method: <br /> <br />0\ <br /> <br />Aggregate <br />