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What does the change in the assumed rate of return mean?

What does the change in the assumed rate of return mean?

The assumed rate of return on investments of the pension fund for Pension Plus 2 will be 6% (compared to 7% for Pension Plus). As a result, the actual investment returns are more likely to meet what was expected and planned for during development of the contribution rates. (Lower than expected investment returns can lead to unfunded liability over time.)

Created 8/7/2017