Oneida-Herkimer Solid Waste Management Authority

Notes to Financial Statements

December 31, 2022 and 2021

Note 6 - New York State Employees’ Retirement System - Continued

Actuarial Assumptions

The total pension liability at March 31, 2022 and 2021 was determined by using actuarial valuations as of April 1, 2021 and 2020, respectively, with update procedures used to roll forward the total pension liability to March 31, 2022 and 2021. The actuarial valuations used the following actuarial assumptions:

Actuarial Cost MethodEntry age normal

Inflation Rate2.7 percent (2022); 2.7 percent (2021)

Salary Scale 4.4 percent (2022); 4.4 percent (2021), indexed by service

Investment rate of return,

20225.90 percent compounded annually, net of expenses

20215.90 percent compounded annually, net of expenses

Cost of living adjustment1.4 percent (2022); 1.4 percent (2021) annually

Decrement

2022Based on FY 2015-2020 experience

2021Based on FY 2015-2020 experience

Mortality improvement

2022Society of Actuaries Scale MP-2020

2021Society of Actuaries Scale MP-2020

The long-term expected rate of return on pension plan investments was determined using a building block method in which best estimate ranges of expected future real rates of return (expected returns net of investment expense and inflation) are developed for each major asset class. These ranges 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. Best estimates of arithmetic real rates of return for each major asset class included in the target asset allocation as of March 31, 2022 are summarized below: