In the valuation process, assumptions are required for four economic variables:
Expected investment rate of return.
Economic assumptions affect expectations regarding the accumulation of assets and the growth of projected pension benefits.
The Pension Funding Council (PFC) adopts economic assumptions for all plans/systems except LEOFF 2. The LEOFF 2 Board adopts economic
assumptions for LEOFF 2. All economic assumptions are then subject to revision by the Legislature. The PFC and LEOFF 2 Board adopted
lower economic assumptions in 2011. In 2012, the Legislature enacted a schedule to decrease the investment rate of return assumption
for all plans except LEOFF 2, as follows.