Accrued benefits refer to the benefits that are due under a defined-benefit pension scheme in relation to the service rendered by an employee up to a specific date. These may be calculated based on current earnings or protected final earnings, and are governed by various regulatory standards depending on the jurisdiction.
Actuarial assumptions are critical estimates used to calculate the likely costs of pension schemes and life assurance policies, essential for determining contributions and benefits.
A DB Scheme, or Defined-Benefit Pension Scheme, promises a specified pension payment, lump-sum, or combination thereof on retirement that is predetermined by a formula based on the employee's earnings history, tenure of service, and age.
A defined-benefit (DB) pension scheme is an occupational pension plan where the retirement benefits are predetermined by a specific formula, typically incorporating years of service and salary levels. The pension is funded accordingly, and accounting for pension costs presents specific challenges governed by Section 28 of the Financial Reporting Standard in the UK and IAS 19.
An occupational pension scheme where the retirement benefits are calculated based on the employee's final salary prior to retirement. It is a type of defined-benefit pension scheme.
An occupational pension scheme, also known as superannuation or workplace pension, is a pension plan designed for employees within a specific trade, profession, or company, providing retirement benefits through either insured or self-administered schemes.
Benefits provided by an employer to former employees, typically those who have retired. The accounting treatment for these benefits, including health care and pensions, varies based on whether they are part of a defined-contribution or defined-benefit pension scheme.
