Question

What happens to pension expens e if a comapny expected a higher rateofreturn on their plan assets?

Answer 1

Company always expects higher rate of return on its assets.
Rate of return on assets means the income earned from investments made, in form of dividends, interest etc. ( Investments here are assets of the company)

Company always plans assets to earn rate of return which are used for pension plan of the employees.

Now, if the comapny expected a higher rate of return on their plan asset, then the pension expenses will be lowered.
These pension expenses are paid from the return earned from assets.