Pension - total return, discount rate

[FrankCFA]

Total return = discount rate + excess return target
Discount rate is decieded by? (PBO?)

 

[pokhim]

The discount rate is decided by the actuary.. But it is on the future cash flows of the pension used calculate the PBO. If we are attempting to increase the surplus we should adjust the PBO by an excess return target to calc the total return

 

[FrankCFA]

Thanks a lot.