Actuarial accrued liability
The present value of projected future benefits earned by employees to date.
Factors that must be assumed for purposes of projecting future benefit payments as part of an actuarial valuation.
A process used by actuaries to 1) project future benefit payments, 2) discount those payments to their total present value, and 3) systematically allocate an appropriate portion of that amount to each period of employee service using one of several accepted methods.
A method of financing benefits by placing resources in trust as employees earn benefits so that the resources thus accumulated, along with related earnings, can be used to make benefit payments as they become due.
Agent multiple-employer plan
A centralized organization, such as a statewide public-employee retirement system, that manages the individual plans of a number of different employers. An agent multiple-employer plan will have a separate actuarial valuation and separate rates for each participating employer.
Actuarially determined contribution
A target or
recommended contribution to a defined benefit OPEB plan for the reporting
period, determined in conformity with Actuarial Standards of Practice based on
the most recent measurement available when the contribution for the reporting
period was adopted.
Actuarially determined employer contribution
A recommended contribution to a defined benefit OPEB plan as determined by an actuary.
Implicit rate subsidy
The de facto subsidy of retirees by permitting them to pay lower than age-adjusted premiums through the use of a single-common or blended premium for both retirees and active employees.
Net OPEB liability
Accounting liability created when an employer does not fully fund its actuarially determined contribution for OPEB.
Other post-employment benefits
All types of post-employment benefits not offered as an integral part of a pension plan, as well as all forms of post-employment healthcare.
A method of financing benefits by making required payments only as they come due.
The term of an OPEB arrangement as understood by both employer and employees.
Unfunded actuarial accrued liability
The difference between the actuarial accrued liability and the actuarial value of assets accumulated to finance that obligation.