Governments that contribute to single employer and agent multiple-employer plans compute annual pension cost as the unfunded actuarial liability.

Question

Quizplus · Accepted Answer

Annual pension cost is calculated using various actuarial assumptions, including the expected rate of return on investments, rate of salary increase, mortality rates, etc. Unfunded actuarial liability is a measure of the difference between the projected benefit payments and the value of assets set aside to pay for those benefits. While governments may contribute to these plans, their annual pension cost is not solely calculated as the unfunded actuarial liability.

Governments That Contribute to Single Employer and Agent Multiple-Employer Plans