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Defined Benefit Pension Plan
A retirement plan where employer commitments are based on a formula considering factors like salary history and duration of employment, with the company bearing investment risk.
Prior Service Cost Amortization
The process of expensing the costs of retroactive benefits granted in a pension plan over a period of time.
Actuarially Determined Discount Rate
This refers to the interest rate used in the actuarial valuation to discount future pension obligations to present value, reflecting the expected rate at which the pension plan's liabilities can be funded or settled.
Pension Liability
The amount of money a company is required to pay into its employees' retirement plans in the future.
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