Seattle City Light 2016 ANNUAL REPORT | Audited Financial Statements 58 THE CITY OF SEATTLE—CITY LIGHT DEPARTMENT NOTES TO FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2016 AND 2015 - 58 - Asset Category Target Allocation Geometric Expected Return Equity Public Equity 48.0% 4.63% Private Equity 9.0% 6.25% Fixed Income Broad Fixed Income 18.0% 0.75% Credit Fixed Income 5.0% 3.55% Real Assets Real Estate 12.0% 3.25% Infrastructure 3.0% 3.25% Diversifying Strategies 5.0% 3.25% Sensitivity of the Net Pension Liability to Changes in the Discount Rate –The following presents the Department’s proportionate share of the net pension liability of SCERS, calculated using a discount rate of 7.50%, as well as what the Department’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1 percentage point lower (6.50%) or 1 percentage point higher (8.50%): 2016 2015 Discount Rate 1% decrease - 6.50% 425.6 $ 375.1 $ Current discount Rate - 7.50% 317.8 271.8 1% increase - 8.50% 227.0 185.0 Discount Rate Sensitivity (In millions) Net Pension Liability at December 31, Plan Fiduciary Net Position – Detailed information about the SCERS’s fiduciary net position is available in the separately issued, audited financial statements as of December 31, 2015, which are publicly available at http://www.seattle.gov/retirement/about-us/financials-and-governance. Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pension – The following table presents information about the pension-related deferred outflows of resources and deferred inflows of resources for the Department at December 31, 2016, and December 31, 2015: