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Question: which of the following statements concerning the various actuarial assumptions...
Question details
Which of the following statements concerning the various actuarial assumptions used in estimating an employer’s contributions to a defined-benefit pension plan is correct?
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The higher the assumed rate of investment income, the larger the employer’s assumed contribution rate. |
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The higher the employee turnover or termination rate, the larger the employer’s assumed contribution rate should be. |
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The greater the expected impact of inflation on salary scales, the larger the employer’s assumed contribution rate should be. |
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Actuarial assumptions are usually so accurate that adjustments in the employer’s annual contribution rate is seldom necessary. |
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