Canadian Companies Smoking Weed On Pension Plan Actuarial Assumptions

Canada 's top companies are being overly optimistic in the assumptions they use for their corporate pension plans, says a study by UBS. While most companies have reduced their assumptions on the discount rate and the expected return on pension

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Canada ‘s top companies are being overly optimistic in the assumptions they use for their corporate pension plans, says a study by UBS. While most companies have reduced their assumptions on the discount rate and the expected return on pension assets, the study notes that the average return on assets assumption at the 49 companies in the sample was 7.66%, rather than the 6% that UBS says would be realistic for a portfolio of 55% stocks/40% bonds/5% cash.

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