Postretirement benefits are computed based upon

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Quizplus · Accepted Answer

Postretirement benefits are based on future benefit amounts, as they are calculated using an employee's years of service and a predetermined formula to determine the amount of benefits they will receive upon retiring. Current salary amounts may be used to determine contributions to retirement plans, but they do not determine the amount of postretirement benefits. Similarly, current benefit amounts may be used as a reference point, but the actual postretirement benefits will be based on future benefit amounts. Future salary amounts also do not determine postretirement benefits, as the benefits are usually based on a predetermined formula rather than on an employee's future earnings.

Postretirement Benefits Are Computed Based Upon