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 | ||
| Asset Class | Target Allocation | Long-Term Nominal Rate of Return |
|---|---|---|
| 2020 | ||
| U.S. Equity | 15.75% | 4.30% |
| International Equity | 15.75 | 4.80 |
| Core Bonds | 20.50 | 1.35 |
| Specialty Credit/High Yield | 15.00 | 2.60 |
| Real Estate | 5.00 | 4.85 |
| Opportunistic | 3.00 | 2.97 |
| Real Return | 15.00 | 4.10 |
| Private Equity | 7.00 | 6.65 |
| Cash Equivalents | 3.00 | 0.20 |
| Total | 100.00% | |
| Hazardous | ||
| Asset Class | Target Allocation | Long-Term Nominal Rate of Return |
| 2020 | ||
| U.S. Equity | 18.75% | 4.30% |
| International Equity | 18.75 | 4.80 |
| Core Bonds | 13.50 | 1.35 |
| Specialty Credit/High Yield | 15.00 | 2.60 |
| Real Estate | 5.00 | 4.85 |
| Opportunistic | 3.00 | 2.97 |
| Real Return | 15.00 | 4.10 |
| Private Equity | 10.00 | 6.65 |
| Cash Equivalents | 1.00 | 0.20 |
| Total | 100.00% | |
Changes in Assumptions and Benefit Terms Since Prior Measurement Date – The Board of Trustees of KERS adopted new actuarial assumptions since June 30, 2018. These assumptions are documented in the report titled “Kentucky Retirement Systems 2018 Actuarial Experience Study for the Period Ending June 30, 2018”. The Total Pension liability as of June 30, 2019, was determined using these updated assumptions.
36.