Understanding Discount Rates for Pension Obligations

McGuinness, Kevin
November 2013
Plan Sponsor News;2013, p119
Trade Publication
The article discusses the brief entitled "Measuring Pension Obligations" from the American Academy of Actuaries which examines the various approaches for selecting discount rates when measuring pension obligations in the U.S. The brief explains the meaning of pension and defines a market-based approach based on expected returns. The brief also looks on the difference between solvency and budget values.


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