An accrued benefits valuation method in which the actuarial liability is based on earnings at the valuation date. The standard contribution rate is that necessary to cover the cost of benefits that will accrue in the control period following the valuation date by reference to earnings projected to the end of that period and non-discretionary revaluation thereafter.

a method of claims reserving that uses the deterioration that has already occurred in business written in the year in question to forecast how it will continue, by fitting a standard type of curve to the pattern of deterioration to date, and using the fitted curve to predict the final loss (contrast with chain ladder, which uses the experience of older years to predict what will happen to newer years).