The Rantings of the barely human.
Accumulated benefits in a pension scheme for a member in respect of his service up to a given time, whether vested or not. The calculation may take account of the member’s current or projected earnings. Allowance may also be made for revaluation and/or pension increases.
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US, MEDICAL: Amount of benefit in a pension plan that has accumulated on behalf of an individual plan participant at any particular time.
Major category of funding methods in which the actuarial liability for active members is based on pensionable service accrued up to the valuation date or to the end of the control period, as appropriate. The treatment of benefits not directly linked to pensionable service is not specified but left to actuarial judgement, subject to the need for consistency between successive valuations. The standard contribution rate is derived from the definition of the actuarial liability appropriate to the accrued benefits funding method selected. It is the rate sufficient, after taking into account the actuarial liability at the beginning of the control period, and the benefits expected to be paid during that period, to provide for the actuarial liability at the end of the control period.
Earnings on a stated sum of money that continues to increase until the money is paid out.
Interest earned but not yet paid.
The benefits an occupational pension scheme member has as of right. They include accrued benefits. The rights for an active member can be based on the scenario that he has left service or he could have the right to link benefits to future salary increases. Specific definitions of the term are set out in PSA93 for the purposes of preservation, contracting out and the Disclosure Regulations. PA95 contains a specific definition in relation to scheme amendments. See DISCLOSURE 1.
A type of state scheme premium payable in respect of a member when a defined benefit scheme ceases to be contracted out. In return the state scheme takes over the obligation to provide the member’s guaranteed minimum pension.
Total of a member’s pension scheme contributions plus investment earnings. In a money purchase scheme, the employer’s contributions plus investment earnings are added to give the overall figure.
One factor used when calculating life insurance reserves. The formula is the accumulated cost of insurance equals the net single premium paid at the end of the term of coverage by the surviving insureds to give death benefits on the insureds who died during the term.
Accrued funds payable to policy owners but left with life insurance company to build up and earn interest.
Amount by which a qualified pension plan fails to meet the minimum funding legal standards. A plan with an accumulated funding deficiency is subject to a penalty tax and enforcement provisions. Also called funding deficiency.