Pension expense is the change in the net pension liability from the previous reporting period to the current reporting period, less adjustments. This may be a negative expense (pension income). - 50 - SCHOOL DISTRICT OF CLAYTON NOTES TO THE FINANCIAL STATEMENTS June 30, 2025 NOTE G – RETIREMENT PLANS - CONTINUED Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions - Continued At June 30, 2025, the District reported deferred outflows of resources from the following sources related to PSRS and PEERS pension benefits: Deferred outflows of resources PSRS PEERS District Total Balance of deferred outflows due to: Differences between expected and actual experience $ 6,248,723 $ 446,436 $ 6,695,159 Changes in assumptions 983,365 - 983,365 Changes in proportion and differences between Employer contributions and proportionate share of contributions 852,134 - 852,134 Employer contributions subsequent to the measurement date 4,779,343 729,374 5,508,717 Total $ 12,863,565 $ 1,175,810 $ 14,039,375 At June 30, 2025 the District reported deferred inflows of resources from the following sources related to PSRS and PEERS pension benefits: Deferred inflows of resources PSRS PEERS District Total Balance of deferred inflows due to: Net difference between projected and actual earnings on pension plan investments $ 2,736,870 $ 286,029 $ 3,022,899 Changes in proportion and differences between Employer contributions and proportionate share of contributions 358,952 121,977 480,929 Total $ 3,095,822 $ 408,006 $ 3,503,828 - 51 -

SCHOOL DISTRICT OF CLAYTON NOTES TO THE FINANCIAL STATEMENTS June 30, 2025 NOTE G – RETIREMENT PLANS - CONTINUED Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions - Continued At June 30, 2025, the District reported deferred outflows of resources from the following sources related to PSRS and PEERS pension benefits: Deferred outflows of resources PSRS PEERS District Total Balance of deferred outflows due to: Differences between expected and actual experience $ 6,248,723 $ 446,436 $ 6,695,159 Changes in assumptions 983,365 - 983,365 Changes in proportion and differences between Employer contributions and proportionate share of contributions 852,134 - 852,134 Employer contributions subsequent to the measurement date 4,779,343 729,374 5,508,717 Total $ 12,863,565 $ 1,175,810 $ 14,039,375 At June 30, 2025 the District reported deferred inflows of resources from the following sources related to PSRS and PEERS pension benefits: Deferred inflows of resources PSRS PEERS District Total Balance of deferred inflows due to: Net difference between projected and actual earnings on pension plan investments $ 2,736,870 $ 286,029 $ 3,022,899 Changes in proportion and differences between Employer contributions and proportionate share of contributions 358,952 121,977 480,929 Total $ 3,095,822 $ 408,006 $ 3,503,828 - 51 - SCHOOL DISTRICT OF CLAYTON NOTES TO THE FINANCIAL STATEMENTS June 30, 2025 NOTE G – RETIREMENT PLANS - CONTINUED Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions - Continued Amounts reported as deferred outflows of resources resulting from contributions subsequent to the measurement date of June 30, 2024, will be recognized as a reduction to the net pension liability in the year ended June 30, 2026. Other amounts reported as collective deferred (inflows)/outflows of resources are to be recognized in pension expense as follows: Year ending June 30, PSRS PEERS District Total 2026 $ (1,491,403) $ (223,060) $ (1,714,463) 2027 7,296,481 546,931 7,843,412 2028 163,202 (112,154) 51,048 2029 (1,133,596) (173,288) (1,306,884) 2030 153,715 - 153,715 $ 4,988,399 $ 38,429 $ 5,026,828 Actuarial Assumptions Actuarial valuations of the Systems involve assumptions about probability of occurrence of events far into the future in order to estimate the reported amounts. Examples include assumptions about future employment, salary increases, and mortality. Amounts determined regarding the net pension liability are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The Board of Trustees adopts actuarial assumptions, each of which individually represents a reasonable long-term estimate of anticipated experience for the Systems, derived from experience studies conducted every fifth year and from Board policies concerning investments and COLAs. The most recent comprehensive experience studies were completed in May 2021. All economic and demographic assumptions were reviewed and certain assumptions were updated, where appropriate, based on the results of the studies and effective with the June 30, 2021 valuations. For PSRS, the retirement rates assumption was updated for the June 30, 2023 valuation due to the passage of Senate Bill 75 (HCS/SS/SB 75), which added the 2.55% formula factor benefit for members that retire with 32 or more years of service. There have been no other changes to the actuarial assumptions and methods for PSRS or PEERS since the June 30, 2021 valuations. Significant actuarial assumption and methods are detailed below. For additional information please refer to the Systems’ Annual Comprehensive Financial Report (ACFR). The next experience studies are scheduled for 2026. - 52 -

For additional information please refer to the Systems’ Annual Comprehensive Financial Report (ACFR). The next experience studies are scheduled for 2026. - 52 - SCHOOL DISTRICT OF CLAYTON NOTES TO THE FINANCIAL STATEMENTS June 30, 2025 NOTE G – RETIREMENT PLANS - CONTINUED Actuarial Assumptions - Continued Significant actuarial assumptions and other inputs used to measure the total pension liability: Measurement Date: June 30, 2024 Valuation Date: June 30, 2024 Expected Return on Investments: 7.30%, net of investment expenses and including 2.00% inflation Inflation: 2.00% per annum Total Payroll Growth PSRS: 2.25% per annum, consisting of 2.00% inflation, 0.125% real wage growth due to the inclusion of active health care costs in pensionable earnings, and 0.125% of real wage growth due to productivity. Total Payroll Growth PEERS: 2.50% per annum, consisting of 2.00% inflation, 0.25% real wage growth due to the inclusion of active health care costs in pensionable earnings, and 0.25% of real wage growth due to productivity. Future Salary Increases PSRS: 2.625% - 8.875%, depending on service and including 2.00% inflation, 0.125% real wage growth due to the inclusion of active health care costs in pensionable earnings, and 0.125% of real wage growth due to productivity, and real wage growth for merit. Future Salary Increases PEERS: 3.25% - 9.75%, depending on service and including 2.00% inflation, 0.25% real wage growth due to the inclusion of active health care costs in pensionable earnings, and 0.25% of real wage growth due to productivity. and real wage growth for merit. Cost of Living Increases PSRS & PEERS: Given that the actual increase in the CPI-U index from June 2023 to June 2024 was 2.97%, the Board approved an actual COLA as of January 1, 2025 of 2.00%, in accordance with the Board's funding policy and Missouri statutes, compared to the assumed COLA of 1.35%. Future COLAs assumed in the valuation are 1.35% each January 1. This COLA assumption is based on the 20-year stochastic analysis of inflation performed in the 2021 experience study and application of the Board's funding policy to those expectations. The current policy of the Board to grant a COLA on each January 1 as follows: If the June to June change in the CPI-U is less than 2% for one or more consecutive one-year periods, a COLA increase of 2% will be granted when the cumulative increase is equal to or greater than 2%, at which point the cumulative increase in the CPI-U will be reset to zero. For the following year, the starting CPI-U will be based on the June value immediately preceding the January 1 at which the 2% cost-of-living increase is granted. - 53 -

The current policy of the Board to grant a COLA on each January 1 as follows: If the June to June change in the CPI-U is less than 2% for one or more consecutive one-year periods, a COLA increase of 2% will be granted when the cumulative increase is equal to or greater than 2%, at which point the cumulative increase in the CPI-U will be reset to zero. For the following year, the starting CPI-U will be based on the June value immediately preceding the January 1 at which the 2% cost-of-living increase is granted. - 53 - SCHOOL DISTRICT OF CLAYTON NOTES TO THE FINANCIAL STATEMENTS June 30, 2025 NOTE G – RETIREMENT PLANS - CONTINUED Actuarial Assumptions - Continued If the June to June change in the CPI-U is greater than or equal to 2%, but less than 5%, a COLA increase of 2% will be granted. If the June to June change in the CPI-U is greater than or equal to 5%, a COLA increase of 5% will be granted. If the CPI decreases, no COLA is provided. The COLA applies to service retirements and beneficiary annuities. The COLA does not apply to the benefits for in-service death payable to spouses (where the spouse is over age 60), and does not apply to the spouse with children pre-retirement death benefit, the dependent children pre- retirement death benefit, or the dependent parent death benefit. The total lifetime COLA cannot exceed 80% of the original benefit. PSRS members receive a COLA on the second January after retirement, while PEERS members receive a COLA on the fourth January after retirement. Mortality Assumptions  Actives PSRS: Experience-adjusted PubT-2010 Teachers Amount Weighted Employees mortality tables with generational projection using the MP-2020 improvement scale. Experience adjustments are equal to the healthy retiree experience- based adjustment factors at all ages for both males and females.  Actives PEERS: Experience-adjusted PubG-2010(B) General Employees Below- Median Income Amount-Weighted Employees mortality tables with generational projection using the MP-2020 improvement scale. Experience adjustments are equal to the healthy retiree experience-based adjustment factors at all ages for both males and females.  Non-Disabled Retirees PSRS: Mortality rates for non-disabled retirees and beneficiaries prior to the member's death are based on the experience-adjusted PubT- 2010 (Teachers) Amount-Weighted Healthy Retiree mortality tables with generational projection using the MP-2020 improvement scale. Mortality rates for non-disabled beneficiaries after the member's death are based on the experience-adjusted PUB-2010 Amount Weighted Contingent Survivor mortality tables with generational projection using MP-2020 improvement scale. The Plan specific experience adjustments are as follows. The non-disabled factor is 1.10 for males and 1.04 for females. The contingent survivor factor is 1.18 for males and 1.07 for females. - 54 -

The non-disabled factor is 1.10 for males and 1.04 for females. The contingent survivor factor is 1.18 for males and 1.07 for females. - 54 - SCHOOL DISTRICT OF CLAYTON NOTES TO THE FINANCIAL STATEMENTS June 30, 2025 NOTE G – RETIREMENT PLANS - CONTINUED Actuarial Assumptions - Continued  Non-Disabled Retirees PEERS: Mortality rates for non-disabled retirees and beneficiaries prior to the member's death are based on the experience-adjusted PubG- 2010(B) General Employees Below Median Income Amount-Weighted Healthy Retiree mortality tables with generational projection using the MP-2020 improvement scale. Mortality rates for non-disabled beneficiaries after the member's death are based on the experience-adjusted Pub-2010(B) Below Median Income Amount-Weighted Contingent Survivor mortality tables with generational projection using the MP-2020 improvement scale. The Plan-specific experience adjustments are as follows. The non- disabled factor is 1.13 for males and 0.94 for females. The contingent survivor factor is 1.01 for males and 1.07 for females.  Disabled Retirees PSRS: Mortality rates for disabled retirees and beneficiaries are based on the experience-adjusted PubT-2010 (Teacher) Amount-Weighted Disabled Retiree mortality tables with generational projection using the MP-2020 improvement scale. Experience adjustments are equal to the healthy retiree experience-based adjustment factors at all ages for both males and females.  Disabled Retirees PEERS: Mortality rates for disabled retirees and beneficiaries are based on the experience-adjusted Pub-2010 General Employees Amount-Weighted Disabled Retiree mortality tables with generational projection using the MP-2020 improvement scale. Experience adjustments are equal to the healthy retiree experience- based adjustment factors at all ages for both males and females. Fiduciary Net Position: The Systems issue a publicly available financial report (ACFR) that can be obtained at www.psrs-peers.org. - 55 -