If a defined benefit pension fund's actual rate of return is ________ than the actuarial assumed rate, then the ________.

Question

Quizplus · Accepted Answer

When the actual rate of return on a defined benefit pension fund's investments is greater than the actuarial assumed rate, the excess returns can reduce the amount the firm needs to contribute to the fund to meet its future obligations. This can lead to increased profits or reduced costs for the firm, benefiting the shareholders.

If a Defined Benefit Pension Fund's Actual Rate of Return