ACFR FY 2023 Final - Flipbook - Page 105
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 methodÿ 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 classÿ These
ranges are combined to produce the long-term expected rates of return by weighting the expected
future real rates of return by the target asset allocation percentage and by adding expected inflationÿ best estimates of real arithmetic rates of return for each major asset class are included in both
the Police Ofocers9 and Fireoghters9 Pension Plan9s target asset allocation as of September 30, 2022.
Asset Class
Domestic Equity
International Equity
Domestic Fixed Income
GTAA
Total
Police
Long Term
Target
Expected Rate
Allocation
of Return
52ÿ80%
7ÿ50%
9ÿ90%
8ÿ50%
32ÿ60%
2ÿ50%
4ÿ70%
3ÿ50%
100.00%
Fire
Long Term
Expected Rate
Target
of Return
Allocation
45ÿ00%
7ÿ50%
15ÿ00%
8ÿ50%
25ÿ00%
2ÿ50%
5ÿ00%
3ÿ50%
100.00%
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Annual Comprehensive Financial Report | September 30, 2023
105
