The target asset allocation and best estimates of arithmetic nominal rates of return for each major asset class are summarized in the following table:
| Non-hazardous | ||
| Target | Long-Term Nominal | |
|---|---|---|
| Asset Class | Allocation | Rate of Return |
| 2018 | ||
| U.S. Equity | 17.50% | 5.75% |
| International Equity | 17.50 | 7.38 |
| Global Bonds | 10.00 | 2.63 |
| Global Credit | 17.00 | 3.63 |
| Real Estate | 5.00 | 6.63 |
| Absolute Return | 10.00 | 5.63 |
| Real Return | 10.00 | 5.13 |
| Private Equity | 10.00 | 8.25 |
| Cash Equivalents | 3.00 | 1.88 |
| Total | 100% | |
| Hazardous | ||
| Target | Long-Term Nominal | |
| Asset Class | Allocation | Rate of Return |
| 2018 | ||
| U.S. Equity | 17.50% | 5.75% |
| International Equity | 17.50 | 7.38 |
| Global Bonds | 4.00 | 2.63 |
| Global Credit | 2.00 | 3.63 |
| High Yield | 7.00 | 5.75 |
| Emerging Market Debt | 5.00 | 5.50 |
| Private Credit | 10.00 | 8.75 |
| Real Estate | 5.00 | 7.63 |
| Absolute Return | 10.00 | 5.63 |
| Real Return | 10.00 | 6.13 |
| Private Equity | 10.00 | 8.25 |
| Cash Equivalents | 2.00 | 1.88 |
| Total | 100% | |
Changes in Assumptions and Benefit Terms Since Prior Measurement Date - Since the prior measurement date, the demographic and economic assumptions that affect the measurement of the total pension liability have been updated as follows:
Changes Since Measurement Date - There were no changes between the measurement date of the collective net pension liability and the employer's reporting date.
34.