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Hi, Is there any basis in using a discount rate for the FASB that is determined by taking the effective rate of the 430 HATFA segment Rates (minimum contribution rates---from the Val) ie 5.64%, and the effective rate of the 404 seg. rates (max contribution rates) ie 3.99%, and the average of the two effective rates is the discount rate for the FASB?  Thank you for any insights/opinions on this matter.

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Just my opinion, but that does not conform to the definition within ASC715, although it could (accidentally) provide a reasonable rate.  Have you reviewed that definition?

However, in the real world, the discount rate selected might be a compromise, usually involving input from the actuary, the auditor, and the sponsor.  Note that some auditors don't exhibit much flexibility.  😉

 

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