Accrued Benefit Cost Method
Definition of "Accrued benefit cost method"
Actuarial method of crediting retirement benefits earned and the costs associated with these earned retirement benefits. An increment (unit) of benefit is credited for each year of recognized service that an employee has earned. Then the present value of these benefits (including the employee's life expectancy) is calculated and assigned to the year earned. The benefit earned by the employee can take the form of a flat dollar amount or a percentage of compensation. For example, this may work out to 11/2% of an employee's compensation being credited to the employee's account for each year of recognized service.
Popular Insurance Terms
Reckless action without regard to life, limb, and/or property; for example, driving 100 miles per hour on a road or highway. ...
Law that established rules and regulations to govern private pension plans, including vesting requirements, funding mechanisms, and general plan design and descriptions. For example, three ...
Rejection by an insurance company of an application for a policy. ...
Life insurance policy clause. If at the end of the grace period the premium due has not been paid, a policy loan will automatically be made from the policy's cash value to pay the premium. ...
Combination property, liability, and business interruption policy. It is usually written to cover expenses of small and medium size businesses resulting from damage or destruction of ...
Fund that concentrates primarily on short-term government securities, certificates of deposit with maturities less than one year, and high-quality interest-bearing corporate debt. The fund ...
Coverage that pays a fixed dollar amount of interest at regular intervals. ...
Nominal interest rate minus the rate of inflation. ...
Pooling of assets of two or more pension funds under common portfolio management. ...
Have a question or comment?
We're here to help.