Past Service Liability
Definition of "Past service liability"
Employer's obligation to fund a pension plan for the time period when employees were qualified to participate but the plan was not yet established. For example, a pension plan is established at XYZ Co. in 1985. Because John Smith started at the firm in 1975, he would have a past service credit for his 10 years of service before the plan started. For funding purposes, annual contribu
Popular Insurance Terms
Present value computation of the accrued or projected benefits of a retirement plan. This computation is known as the actuarial valuation because it is based on probability (retirement ...
Principle of surplus distribution as the result of excess funds above the amount required to establish legal reserves. These excess funds are generated from three sources: mortality ...
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Individual or other entity who owns an insurance policy. Synonymous with policyowner. ...
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Total earned premiums minus total expenses and losses paid of the insurance company. ...
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