Defined Benefit Plans

Time horizon is consistent with company’s obligation to pay benefits
Asset/liability study from annual actuarial projections need to be considered and factored into risk/return profile
The actuarily calculated “required rate of return” should be considered by the fiduciaries and compared to the existing portfolio allocation.
The long-term projected capital market assumptions for investment returns for the portfolio should be consistent with actuarially calculated rate of return
If deviations exist, they should be discussed and documented with all parties involved.