Retirement Plans: 401(k)s, IRAs and Other Deferred Compensation Approaches 10th Edition by Allen, Joseph Melone, Jerry Rosenbloom, Dennis Mahoney

Exercise 7

Assume that you are asked to set assumptions for a new defined benefit pension plan. Describe the procedure you would follow. (Note: For the purpose of answering this question, it is assumed that use of some of these assumptions is primarily to forecast the ultimate cost of the plan rather than to conform to governmental pension funding requirements since some assumptions would be stipulated according to the funding rules.)