Compensation Strategies Group, Ltd.
Nicholas Pension Consultants
Nova 401(k) Associates
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|It's a Myth That Assumptions Drive Pension Costs|
The Terry Group
July 23, 2015
"The cost of a pension plan, paid by making contributions over time, is a function of the pensions paid out and of the investment earnings of the fund. Period. Costs are not a function of assumptions. Real management of a pension plan involves setting the level of pensions and deciding how to invest the assets. The cost of the plan -- again, paid by making contributions over time -- is unaffected by assumptions. It is simply the sum total of the pension payments to plan members, offset by the pension fund's investment earnings."
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