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<br /> <br /> <br /> <br />October 13, 2022 11 <br />ACTUARIAL ASSUMPTION HIGHLIGHTS <br />CERBT Investment Options <br /> <br /> 2018 Asset Allocation <br /> Strategy 1 Strategy 2 Strategy 3 <br />Global Equity 59% 40% 22% <br />Fixed Income 25% 43% 49% <br />TIPS 5% 5% 16% <br />Commodities 3% 4% 5% <br />REITs 8% 8% 8% <br />Total 100% 100% 100% <br /> 2022 Asset Allocation (approved March 14, 2022) <br /> Strategy 1 Strategy 2 Strategy 3 <br />Global Equity 49% 34% 23% <br />Fixed Income 23% 41% 51% <br />TIPS 5% 5% 9% <br />Commodities 3% 3% 3% <br />REITs 20% 17% 14% <br />Total 100% 100% 100% <br /> <br /> <br /> <br /> <br /> <br />October 13, 2022 12 <br />ACTUARIAL ASSUMPTION HIGHLIGHTS <br />Discount Rate <br /> Future expected returns <br /> Stochastic simulations of geometric average returns over 20 years <br /> 5,000 trials <br /> 2.50% inflation assumption <br /> Projections based on 8 independent Investment Advisors 2021 10-year Capital <br />Market Assumptions and where available, investment advisors anticipated long-term <br />trends <br /> Confidence levels (based on 2022 asset allocations): <br /> Strategy 1 Strategy 2 Strategy 3 <br />50% Confidence Level 6.25% 5.75% 5.25% <br />55% Confidence Level 6.00% 5.50% 5.00% <br />60% Confidence Level 5.75% 5.25% 4.75% <br /> <br /> Department currently in Strategy 1 <br /> Recommend 6.25% discount rate <br /> <br />