Audits of 401(k) Plans

EMPLOYEE BENEFIT PLANS GLOSSARY

AAG — AICPA Audit and Accounting Guide, Audits of Employee Benefit Plans.

Accrued Experience-Rating Adjustments — The refund at the end of the policy year of the excess of premiums paid over paid claims, reserves required by the insurance company, and the insurance company's retention (fee).

Accumulated Eligibility Credits — A liability of a plan arising from prior employee service for which employer contributions have been received.

Accumulated Plan Benefits — Benefits that are attributable under the provisions of an employee benefit plan to employees' service rendered to the benefit information date.

Act — The Employee Retirement Income Security Act of 1974.

Actuarial Asset Value — A value assigned by an actuary to the assets of a plan generally for use in conjunction with an actuarial cost method.

Actuarial Cost Method — A recognized actuarial technique used for establishing the amount and incidence of employer contributions or accounting charges for pension cost under a pension plan.

Actuarial Value of Accumulated Plan Benefits — The amount as of a benefit information date that results from applying actuarial assumptions to the accumulated plan benefits, with the actuarial assumptions being used to adjust those amounts to reflect the time value of money (through discounts for interest) and the probability of payment (by means of decrements such as for death, disability, withdrawal, or retirement) between the benefit information date and the ...