Pension Plan Valuation Factors

Definition of "Pension plan valuation factors"

Alan  Cottrell real estate agent

Written by

Alan Cottrellelite badge icon

Keller Williams Realty

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 event will take place); demographic changes (increase or decrease in employee's earnings); interest rate (discount rate used to derive present value of future benefits).

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