Actuarial Assumptions in Defined Benefit Contribution Plans

Which of the following statements concerning the various actuarial assumptions used in estimating an employer’s contributions to a Defined Benefit Pension Plan is correct?
- The higher the assumed rate of investment income, the larger the employer’s assumed contribution rate.
- The higher the employee turnover or termination rate, the larger should be the employer’s assumed contribution rate.
- The greater the expected impact of inflation on salary scales, the larger should be the employer’s assumed contribution rate.
- Actuarial assumptions are usually so accurate that adjustments in the employer’s annual contribution rate are seldom necessary.