Dynamic asset allocation is accessible only if Use dynamic asset allocation for investment return is checked in the Investment Return, Inflation & Lump Sum & Alternate Benchmarks topic for investment return. Dynamic asset allocation allows you to vary investment return each year as a function of funded ratio.

Enter the number of asset mixes to use in the funded ratio based decision rule. Asset mix numbers are assigned to funded ratio intervals. To define the funded ratio, select the Liability for the funded ratio's denominator {available liabilities vary by computation mode and are listed in the End of Year Additional Contribution help section). Then, for the funded ratio's numerator, define the Asset Value as either Market value or Actuarial Value for funding liabilities (Market-Related Value for accounting liabilities).

For example, you may want mixes #1, #2, or #3 to be chosen if the funded ratio is (A) less than .75, (B) between .75 and 1.1 or (C) greater than 1.1 respectively. For this example, enter .75 and 1.1 as the Funded ratio breakpoints. The implicit breakpoints zero and the unbounded highest value are understood. Note that the number of intervals is always one less than the number of breakpoints (including implicit breakpoints). You now have the opportunity to enter Asset Mix #s for each funded ratio interval in the Mix Map spreadsheet.

For each asst mix, enter the Investment Returns by forecast year. The assumption in the last year will be used for all subsequent years. To vary Accounting expected Returns (except for German Pension, and U.K. Pension modes), by asset mix and forecast year, check the Use dynamic asset allocation checkbox in  Future Valuation Interest Rates. In Canadian Registered Pension mode, the Provision for Adverse Deviations will also vary by year and funded ratio.

Re-risking and the ability to delay the dynamic asset allocation are available. If the Allow Re-risking checkbox is not checked, the historically highest funded ratio will be used for table lookup purposes. If the checkbox is checked, the current funded ratio will be used. Dynamic Asset Allocation may be delayed by checking the During a deferral period of x year(s), use asset mix # y checkbox.  After checking the box, enter the deferral period and the Mix # to be used during the deferral period.