b'Capital Region Airport Commission NOTES TO FINANCIAL STATEMENTS June 30, 2025 and 2024 Note 10.GROUP LIFE INSURANCE (GLI) PLAN (OPEB PLAN) (continued) NET GLI OPEB Liability (continued) The total GLI OPEB liability is calculated by the Systems actuary, and each plans fiduciary net position is reported in the Systems financial statements. The net GLI OPEB liability is disclosed in accordance with the requirements of GASB Statement No. 74 in the Systems notes to the financial statements and required supplementary information. Long-Term Expected Rate of Return The long-term expected rate of return on the Systems investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of Systems investment expense and inflation) are developed for each major asset class. Theserangesarecombinedtoproducethelong-termexpectedrateofreturnbyweightingthe expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target asset allocation and best estimate of arithmetic real rates of return for each major asset class are summarized in the following table:Long-term Arithmetic Weighted AverageTarget Asset Long-term Expected Long-term ExpectedAsset Class (Strategy) Allocation Rate of Return Rate of Return*Public Equity 32.00% 6.70% 2.14%Fixed Income 16.00% 5.40% 0.86%Credit Strategies 16.00% 8.10% 1.30%Real Assets 15.00% 7.20% 1.08%Private Equity 15.00% 8.70% 1.31%PIP - Private Investment Partnerships 1.00% 8.00% 0.08%Diversifying Strategies 6.00% 5.80% 0.35%Cash 2.00% 3.00% 0.06%Leverage -3.00% 3.50% -0.11%Total 100.00% 7.07%Expected arithmetic nominal return** 7.07%*Theaboveallocationprovidesaone-yearexpectedreturnof7.07%(includes2.50%inflationassumption). However, one-year returns do not take into account the volatility present in each of theassetclasses.Insettingthelong-termexpectedreturnfortheSystem,stochasticprojectionsareemployed to model future returns under various economic conditions. These results provide a range ofreturns over various time periods that ultimately provide a median return of 7.10%, including expectedinflation of 2.50%.**On June 15, 2023, the VRS Board elected a long-term rate of return of 6.75%, which was roughly at the 45 thpercentile of expected long-term results of the VRS fund asset allocation at that time, providing a median return of 7.14%, including expected inflation of 2.50%. 65'