Conversion Factor For Employee Contributions

Definition of "Conversion factor for employee contributions"

Shaune Corbett, Broker real estate agent
Shaune Corbett, Broker, Real Estate Agent TruWest Realty, Inc.

Inverse of the actuarial present value of a life annuity, taking the employee's life expectancy into account, to commence income payments at the normal retirement age of the employee. It is used in a defined benefit plan to determine the amount of accrued benefits that result from the employee's contributions.

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