would continue the use of the expected return on assets as the primary discount rate method for computing the pension liability on the balance sheet and for computing service cost, in place of the correct rate, the risk-free rate. It would also continue the practice of using the expected return instead of the actual return to compute pension expense and income.
Barton makes his best efforts here to persuade the Board to move from these outdated practices to those that better represent how finance really works today, and he spells out how the use of the expected return assumption makes it nearly inevitable that sooner or later pension plans will fail. And of course they are in danger of doing that right now, after 11 years of flat markets.
Finance will spend on building new data centers or how many new facilities it needs to compete with cloud computing giants fintech entrepreneur….
This blog is awesome. Particularly, financial advisors for medical professionals people would love to read it.