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Long Term Expected Rate of Return

Best estimates of arithmetic real rate of return on the major asset class included in the pension plan’s target asset allocation as of June 30, 2021 are summarized in the following table:


Asset Class Target Allocation Expected Long-Term Real Rate of Return


Domestic Equity


39%


5.00% per annum

International Equity


21%


5.20% per annum

Fixed Income


40%


2.00% per annum

Total or Weighted Arithmetic Average


100%


3.84% per annum