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A business case should not discuss the risks involved in the project.
Projected Benefit Obligation
An actuarial measure of the present value of pension benefits owed to employees, accounting for projected salary increases.
Service Cost
The actuarial present value of benefits attributed to employee service during a period, often recognized in pension expense accounting.
Settlement/Discount Rate
The interest rate used in calculating the present value of future cash flows when assessing the value of financial instruments or liabilities.
Actuarial Loss
occurs when the actual experience under a pension plan deviates from expected assumptions, resulting in higher costs than projected.
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