Question

Required: Match the term on the right to the appropriate definition or description on the left. Term Definition 1. Actuarial method 2. Projected benefit obligation 3. Underfunded plan 4. Defined contribution plarn 5. Vested benefit obligation 6. Prior service costs A. Employee Retirement Income Security B. Benefits provided as a result of amounts C. Benefits for vested and nonvested D. Cost of benefits arising from pasted year E. Benefits provided based on a formula F. Irrevocable accumulation of benefits Act of 1974 deposited and earnings thereon employees at estimated future pay rates of service utilizing age, service and pay history 7. Service costs 8. Settlement rate 9. ERISA G. H. I. Benefits for vested employees at current pay rates Used to determine the interest on projected benefit obligations outstandin Use of complex computations estimating impact of age, mortality, turnover, interest rates and other factors 10. Vesting 11. Accumulated benefit obligation 12. Defined benefit plan J. Fair value of assets less than projected K. Benefits for vested and nonvested L Actuarial present value of benefits benefit obligation employees at current pay rates attributed to service incurred during the

Answer 1

Sr. no	Term	Defination
1	Actuarial method	Use of complex computations estimating the impact of age , mortality , turnover , interest rate
2	Projected benefit obligation	Benefit for vested and unvested employee at current pay rates.
3	Unfunded Plan	Fair value of asset is less than projected benefit obligation
4	Defined Contribution Plan	Benefits provided as a result of amount deposited and earning thereon.
5	Vested benefit obligation	Benefit for vested employee at current pay rates.
6	Prior Service Cost	Cost of benefit Arising from Pasted Year of Service
7	Service Costs	Actuarial present value of benefits attributed to service incurred during the year
8	Settlement rate	Used to determine the interest on projected benefits obligations outstanding
9	ERISA	The Employee Retirement Income Security Act of 1974
10	Vesting	Irrecovable accumlation of benefits
11	Accumlated benefit obligation	Benefit for vested and unvested employee at future pay rates.
12	Defined Benefit Plan	Benefits provided based on the formula utlizing age,service and pay history