Pension Plan Valuation Factors


Definition of "Pension plan valuation factors"

Alan Cottrell
  RE/MAX Preferred Properties

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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