Text · page 150 of 322
Read the whole document on one page (all 322 pages, each with its own heading)
estimates of the arithmetic real rates of return for each major asset class included in the target asset allocation are summarized below: ERS Long-Term Expected Target Allocation Real Rate of Return Measurement date March 31, 2025 Asset class: Domestic equities 25.0 % 3.54 % International equities 14.0 6.57 Private equity 15.0 7.25 Real estate 12.0 4.95 Opportunistic/Absolute Return Strategy 3.0 5.25 Credit 4.0 5.40 Real assets 4.0 5.55 Fixed Income 22.0 2.00 Cash 1.0 0.25 Total 100.0 % Discount Rate—The discount rate used to calculate the total pension liability was 5.9%. The projection of cash flows used to determine the discount rate assumes that contributions from plan members will be made at the current contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based upon the assumptions, the System’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Sensitivity of the Proportionate Share of the Net Pension Liability to the Discount Rate Assumption—The following chart presents the Town’s proportionate share of the net pension liability calculated using the discount rate of 5.9%, as well as what the Town’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is one percentage-point lower (4.9%) or one percentage-point higher (6.9%) than the current assumption. Decrease Assumption Increase (4.9%) (5.9%) (6.9%) Employer's proportionate share of the net pension liability (asset)—ERS $ 1,323,891 $ 457,441 $ (266,046) Pension Plan Fiduciary Net Position—The components of the current-year net pension liability of all participating employers as of March 31, 2025, are as follows: (Dollars in Thousands) ERS Employers' total pension liability $ 247,600,239 Plan fiduciary net position (230,454,512) Employers' net pension liability (asset) $ 17,145,727 Ratio of fiduciary net position to the employers' total pension liability 93.08% - 97 -