Funding Standard Account


Definition of "Funding standard account"

John  Donahue real estate agent
John Donahue, Real Estate Agent Keller Williams

Approach in pension plan funding under which a separate account is maintained for comparing actual contributions to the plan with the minimum contributions required to meet future employee benefit liabilities. This account acts as a reservoir in that it can store excess contributions above the minimum required. It also allows excess contributions to accumulate at interest and then applies these accrued contributions to reduce the minimum required future contributions.

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