Member’s paper: Going Concern Discount Rate for Pension Plans with High Asset Allocation to Bonds

Author: Gavin Benjamin

Publication date: 13-01-2022

Version: Current

Language available: English only

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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.

Categories: Research

Topics: Pensions

Pages: 38

Format: PDF

Accession no.: rp222002