The weighted average assumptions used to determine net benefit cost recorded on the Consolidated Statement of Earnings for the years ended June 30 were as follows: (1) Pension Benefits Other Retiree Benefits Years ended June 30 2022 2021 2020 2022 2021 2020 Discount rate 1.7 % 1.5 % 1.9 % 3.2 % 3.1 % 3.7 % Expected return on plan asset s 5.5 % 6.5 % 6.6 % 8.4 % 8.4 % 8.4 % Rate of compensation increase 2.7 % 2.5 % 2.6 % N/A N/A N/A Interest crediting rate for cash balance plans 4.4 % 4.4 % 4.4 % N/A N/A N/A (1) Determined as of beginning of fiscal year. For plans that make up the majority of our obligation, the Company calculates the benefit obligation and the related impacts on service and interest costs using specific spot rates along the corporate bond yield curve. For the remaining plans, the Comp any determines these amounts utilizing a single weighted average discount rate derived from the corporate bond yield curve used t o measure the plan obligations. Several factors are considered in developing the estimate for the long - term expected rate of retu rn on plan assets. For the defined benefit retirement plans, these factors include historical rates of return of broad equity and bond indices and proje cted long - term rates of return obtained from pension investment consultants. The expected long - term ra tes of return for plan assets are 8 - 9% for equities and 3 - 5% for bonds. For other retiree benefit plans, the expected long - term rate of return reflects that the assets are comprised primarily of Company stock. The expected rate of return on Company s tock is based on the long - term projected return of 8.5% and reflects the historical pattern of returns. Plan Assets . Our investment objective for defined benefit retirement plan assets is to meet the plans' benefit obligations and to improve plan self - suf ficiency for future benefit obligations. The investment strategies focus on asset class diversification, liquidity to meet benefit payments and an appropriate balance of long - term investment return and risk. Target ranges for asset allocations are determ ined by assessing different investment risks and matching the actuarial projections of the plans' future liabilities and benefit payments with current as well as expected long - term rates of return on the assets, taking into account investment return volati lity and correlations across asset classes. Plan assets are diversified across several investment managers and are generally invested in liquid funds that are selected to track broad market equity and bond indices. Investment risk is carefully controlled with plan assets rebalanced to target allocations on a periodic basis and with continual monitoring of investment managers' performance relative to the investment guidelines established with each investment manager. Our target asset allocation for the y ear ended June 30, 2022, and actual asset allocation by asset category as of June 30, 2022 and 2021, were as follows: Target Asset Allocation Actual Asset Allocation at June 30 Pension Benefits Other Retiree Benefits Pension Benefits Other Retiree Benefits Asset Category 2022 2021 2022 2021 Cash — % 2 % 1 % 1 % 2 % 2 % Debt securities 61 % 2 % 58 % 59 % 1 % 2 % Equity securities 39 % 96 % 41 % 40 % 97 % 96 % TOTAL 100 % 100 % 100 % 100 % 100 % 100 % The Procter & Gamble Company 55 Amounts in millions of dollars except per share amounts or as otherwise specified.