Actuarial Cost Method Law and Legal Definition
Actuarial cost method is an accounting technique used for calculating the relationship between a pension plan's present cost and its present future benefits. The present value of the future benefits that are payable to pension plan participants and fund administration expenses are computed and the costs are assigned to the respective accounting periods. This relationship shows the extent to which a pension plan's benefits are funded. The objective is to identify on a year-by-year basis the cost of benefits accrued for the particular year.
Legal Definition list
- Actuarial Cost Assumptions
- Actual-Risk Test
- Actual Yield [Agriculture]
- Actual Total Loss
- Actual Taking
- Actuarial Cost Method
- Actuarial Documents [Federal Crop Insurance Corporation]
- Actuarial Equivalent (Health Care)
- Actuarial Experience [Employee Retirement]
- Actuarial Method [HUD]
- Actuarial Present Value [Internal Revenue]
