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Discount rate methodology for 2017

21 April 2017      Karel Thomas, Executive Director

As you set about budgets and forecasts for next year, I am sure you will be pleased that we have commissioned Mercer again to provide an outline methodology for institutions to arrive at a suitable discount rate, that reflects their liability profile, and can be used in the calculation of the USS deficit recovery liability required under FRS102. This paper sets out the discount rate information based on 28 February 2017 market conditions and this paper provides guidance on using the rates. As for last year’s calculations, Mercer will provide an addendum to the paper in the early part of August to take account of market conditions at the end of July 2017. Let us know your thoughts on this via the discussion board.



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