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August 2020 | Pension Solutions

The Numbers Game: Developing Defined Benefit EROA Assumptions

Forecasting the future – it sounds hard, and yet, every year hundreds, if not thousands, of defined benefit plan sponsors go through an exercise of predicting their plans’ future returns. While this exercise has become common practice, and is required in many circumstances in order to comply with many accounting and financial reporting requirements, there are still many questions left unanswered as to how plan sponsors should develop an expected return on assets (EROA) assumption.

In our latest paper, we seek to i) provide some historical context around how assumptions have changed over time; ii) illustrate recent actions by plans sponsors in making adjustments; iii) identify best practices for setting an EROA assumption; iv) answer common questions; and v) outline our own EROA forecasts for a series of illustrative portfolios to help plan sponsors think about the range of acceptable outcomes.


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June 2020 | Pension Solutions
Corporate Pension Quarterly

While coronavirus remains a public health concern, the market has significantly recovered from its March lows with all US states re-opening to some degree despite the recent uptick in COVID-19 cases. In our second edition of the Corporate Pension Quarterly Q2 2020: Whiplash, we provide observations on market volatility and pension funded status, and current themes that are top of mind for clients.