ACFR FY 2022 FINAL BOOK - Flipbook - Page 99
FINANCIAL SECTION
City of Eustis, Florida
NOTES TO FINANCIAL STATEMENTS
Note 7 - Pension Plans (Continued)
Long-Term Expected Rate of Return
The long-term expected rate of return on pension plan investments was determined using a building-block method� The best estimate ranges of expected future real rates of return (expected returns,
net pension plan investment expenses, 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 real arithmetic rates of return for each major asset class are included in both
the police officers’ and firefighters’ pension plan’s target asset allocation as of September 30, 2022�
Asset Class
Domestic Equity
International Equity
Domestic Fixed Income
Short-Term Investments
private Real Estate
GTAA
private Equity
Total
Police
Long Term
Target
Expected Rate
Allocation
of Return
52�80%
6�90%
9�40%
6�90%
34�20%
6�90%
3�60%
6�90%
0%
0%
0%
0%
0%
0%
100.00%
Fire
Target
Allocation
45�00%
15�00%
25�00%
0�00%
10�00%
5�00%
0�00%
100.00%
Long Term
Expected Rate
of Return
7�50%
8�50%
2�50%
0�00%
4�50%
3�50%
0�00%
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Annual Comprehensive Financial Report | September 30, 2022
99