Table:
|  |  |  |  | Fair value as of |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | September 30, 2019 |  |  |  | September 30, 2018 |  |  |  |
|  | Fair Value Measurements Using Inputs Considered as |  |  |  | Fair Value Measurements Using Inputs Considered as |  |  |  |
| Asset category | Total | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 |
| Cash on deposit | $279 | $279 | $- | $- | $36 | $36 | $- | $- |
| Pooled funds | 7,959 | 7,959 | - | - | 8,234 | 8,234 | - | - |
| Total plan assets | $8,238 | $8,238 | $- | $- | $8,270 | $8,270 | $- | $- |
Paragraphs:
The fair value of the assets held by the U.K. pension plan by asset category are as follows:
The expected long-term rates of return on plan assets are equal to the yields to maturity of appropriate indices for government and corporate bonds and by adding a premium to the government bond return for equities. The expected rate of return on cash is the Bank of England base rate in force at the effective date.
Level 1 investments represent mutual funds for which a quoted market price is available on an active market. These investments primarily hold stocks or bonds, or a combination of stocks and bonds.
Question:
How is the expected long-term rates of return on plan assets determined?
Answer: Adding a premium to the government bond return for equities