The market-consistent actuarial present value of accrued benefits that are expected to be paid in the future. For the purpose of this present value measurement, accrued benefits include vested and nonvested benefits, and take into account the following items (if applicable to the plan benefits) as of the measurement date:
CreativeMinds WordPress Plugin ASB Glossarya. accrued service;
b. compensation;
c. substantive plan provisions, i.e., the plan as it is commonly understood by the plan sponsor and participants, reflecting current benefit administration practice;
d. ancillary benefits, such as disability benefits or death benefits; and
e. automatic cost-of-living adjustments.
Ancillary benefits and early retirement subsidies are deemed to accrue on a pro rata basis over total service. Any benefit that is not based on service is deemed to accrue on a pro rata basis over total service. Benefits that are disproportionately backloaded relative to service are deemed to accrue on a pro rata basis over total service. (Measuring Pension Obligations and Determining Pension Plan Costs or Contributions)
