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Peter's DB pension plan provides retirement benefit that linked to the years of working at the company and the final salary. The retirement is further
Peter's DB pension plan provides retirement benefit that linked to the years of working at the company and the final salary. The retirement is further increased by a fixed 3% annually each year. His company is going to change the DB plan so the amount of the retirement benefit increase is positively correlated to the performance of the company's stock. Will this change increase or decrease the discount rate for the DB plan benefit?
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