Why this is mistaken
Wrong: The pension discount rate is the plan's expected investment return.
Correction: The discount rate measures the obligation; the expected return rate is a separate plan-asset assumption.
Where to watch
When this mistake may appear
- A benefit-plan analysis treats this claim as true: The pension discount rate is the plan's expected investment return.
Check your work
Your work may contain this mistake if:
- The pension discount rate is the plan's expected investment return.