FRA- Discount rate on pension obligations

[300hoursoverand]

Pls bear with me. This is something which is not directly linked to the Reading itself.
Why is the discount rate on pension obligation based on the rate of return on high quality corporate bonds?
Could some one explain the logic behind this?
Provided there is a reasoning behind this.

 

[S2000magician]

I’d imagine it’s so because a pension is willing to take some risk (hence, they don’t use a risk-free rate as the discount rate), but not an undue amount of risk (hence, they don’t used equity returns as the discount rate); the return on high-quality corporate bonds is somewhere in the middle: a little bit fish, a little bit fowl.