Kiakaha

^ that’s what i did.. when I left the exam everyone was saying its 7. something im not sure but I was kind of sure that it is 5 only.. its not a found or end.. im not sure.. anyone?

spartan1

so…5% right?

NakedPuts

i think some of you guys are confusing individual IPS with institutional IPS

nixie24

^ same here, i just used the dis rate and didnt include inflation but i dont recall ANY fee..

SFoyil

truongdv wrote:
If benifit are indexed to inflation, in should be corporated in discount rate. In this case is 5% included
that depends if it’s real or nominal. if you’re referring to the exam, then i don’t know, because we’re not supposed to discuss it.  OP, is it real or nominal? if nominal, then the inflation rate is just to mess with you.

dandman

igor555 wrote:
was mgmt fee on both versions of exams?
I dont remember it being on the version i took, it had inf and disc rate only :/ …

dcfox83

Does anyone remember if the discount rate was nominal or real, becasue if it was real, then we need to incorporate inflation. Else if its nominal discount rate…. See Question 3 2008.

giorgio10

If benifit are indexed to inflation, in should be corporated in discount rate. In this case is 5% included

bchadwick

Systematic wrote:
DB plan normally doesnt state to keep the real value of the portfolio, the assets arent meant to live indefineitely. Unless, explicitly stated, but I dont think Ive ever seen a DB plan where they wanted to maintain the real value of the assets like an endownment or foundation.
5.3 for DB plan
If it were an endownment it’d be 7.3
if benefits are indexed to inflation, then the returnw ould  need to include the rate of inflation.

Viceroy

DB plan normally doesnt state to keep the real value of the portfolio, the assets arent meant to live indefineitely. Unless, explicitly stated, but I dont think Ive ever seen a DB plan where they wanted to maintain the real value of the assets like an endownment or foundation.
5.3 for DB plan
If it were an endownment it’d be 7.3