Req return for DB Plan

[rokkefella]

If the actuarial rate is, let’s say 7% and the plan is underfunded. The expected return on assets is 8%. Which one do you pick as your relevant required return for formulating an IPS for a DB plan?
Thanks.

 

[Hiya Turkiya]

Normally, we have to start with actuarial rate, then add the management expenses.