The phrase "assumed return" is correct and usable in written English.
It can be used in contexts related to finance, investments, or projections where a return on investment is estimated or presumed.
Example: "The financial analyst calculated the assumed return on the investment over the next five years."
Alternatives: "expected return" or "projected return".
Burlington Northern cited several factors that added to expenses, including lower assumed return from its pension assets because of a weaker long-term outlook for financial markets.
That so-called "myth" notwithstanding, CalPERS itself shifted from an 8.25% assumed return in 2002 to a 7.5% return assumption in 2011 and, beginning in 2018, a 7.0% assumed return.
Last year Verizon lost $3.1 billion on its pension assets but with a 9.25% assumed return, reported a $1.85 billion paper gain on those assets.
This may not seem like a big deal, but a one percentage point difference between the assumed return and actual return generates a 31% increase in projected liabilities over a 30-year period.
His 1998 Finance Act instructs the Inland Revenue to assume that assets in insurance contracts have been earning a 15% compound annual return — and to tax that assumed return at Britain's ordinary income tax rates.
But economists – in a poll commissioned by the University of Chicago's Booth School of Business – almost universally believe public employee pension shortfalls are understated due to pensions' use of non-standard accounting methods in which guaranteed benefit liabilities are "discounted" using the assumed return on an investment portfolio holding about three-quarters risky assets.
The financial crash provoked a few states to lower their assumed returns.
Thanks to high assumed returns, governments projected that they could afford to both ratchet up benefits and minimize contributions.
Virtually all pension funds had assumed returns would be better, leaving them underfunded when their investments failed to perform as expected.
And since those assumed returns are incorporated into measurements of the fund's status, as if they had already been realized, states that come up with the most rosy market forecasts look, on paper, to be better financed.
Smaller assumed returns mean larger ARCs, but many states are already having trouble making their current ARCs that are based on unrealistic returns.
