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Accession #: rp222002

 

Publication Date:
January 13, 2022
Title:
Member’s paper: Going Concern Discount Rate for Pension Plans with High Asset Allocation to Bonds
Other Details:
38 pages.
Author:
Gavin Benjamin, FCIA
Description:
Due to the increased importance of going concern valuations in the funding of Canadian pension plans, there is an increased emphasis on the assumptions used for these valuations, including the going concern discount rate.

This paper addresses considerations when selecting the going concern discount rate for a pension plan with a high allocation to bonds, with a particular emphasis on the component of the discount rate which is based on the long-term expected rate of investment return of the plan’s bond portfolio.

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