Conversion Factor For Employee Contributions


Definition of "Conversion factor for employee contributions"

Romy Borrero
  Keller Williams Realty

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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