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A pension fund for the Pennsylvania State employees currently has $100 million in pension assets and $94 million in pension liabilities. Pennsylvania uses the PBO method. The following information is relevant:

A. The pension manager expects the returns on equities to increase over the next decade, so she is considering an increase in the discount rate to determine the pension obligation.

B. Pennsylvania has just recently increased its total employees covered by the pension by 35% and expects the hiring to continue over the next decade. The pension manager is considering an increase in the compensation growth rate to determine the pension obligation.

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  • Category:- Basic Finance
  • Reference No.:- M941557

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