Chapter 12. Pensions and Other Postretirement Benefits
Definitions of Terms
- accrued pension cost
The pension cost accrued in excess of the employer’s contribution
- accumulated benefit obligation
The actuarial present value of benefits indicated by the benefit plan formula for employee service and compensation up to (but not beyond) a specified date. It does not address future compensation levels.
- defined benefit pension plan
A pension plan that specifies the amount of benefits to be provided, usually as a function of service time or compensation.
- defined contribution pension plan
A pension plan that specifies the amount of funds contributed to each plan participant’s individual account. The plan does not create an obligation to provide specific benefits.
- expected return on plan assets
The rate of return used for calculating the amount of delayed recognition of changes in the fair value of plan assets.
- postemployment benefits
The benefits provided to former employees subsequent to their employment but before their retirement.
- projected benefit obligation
The actuarial present value of benefits indicated by the benefit plan formula for employee service and compensation up to a specified date. It includes assumptions regarding future compensation levels.
- service
The range ...
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