Pension return objective
At a minimum the return objective is the discount rate used to compute the present value of the future benefits. If a plan were fully funded, earns the discount rate, and the actuarial assumptions are correct, the fully funded status will remain stable. It is acceptable to aim for a somewhat higher return that would grow the surplus and eventually allow smaller contributions by the sponsor. - Schweser
If a plan were fully funded, earns the discount rate. Do we need to add inflation rate as well? Thanks.
At a minimum the return objective is the discount rate used to compute the present value of the future benefits. If a plan were fully funded, earns the discount rate, and the actuarial assumptions are correct, the fully funded status will remain stable. It is acceptable to aim for a somewhat higher return that would grow the surplus and eventually allow smaller contributions by the sponsor. - Schweser
If a plan were fully funded, earns the discount rate. Do we need to add inflation rate as well? Thanks.