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Projected Benefit Obligation
An actuarial calculation of the present value of future pension benefits earned to date by employees, based on expected salary increases.
Vested Benefits
Employee benefits (such as pension plans) that are fully entitled to the employee, not contingent on further employment.
Actuarial Assumptions
The estimates and hypotheses used by actuaries to calculate insurance risks and liabilities, including rates of mortality, morbidity, and interest.
Service Cost
The actuarial present value of benefits earned by employees during a given period, included in the calculation of pension expense.
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