The Process of Multiplying Survey Data by Some Factor Judged

question 22

Multiple Choice

The process of multiplying survey data by some factor judged to reflect the difference between a survey benchmark job and a company job is called _____.

• A)updating
• B)point factor adjustment
• C)lead/lag policy adjustment
• D)survey leveling

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Definitions:

Retroactive Benefits

Retroactive benefits refer to payments or compensations provided for a period before the benefits were approved or a claim was settled.

Actuarial Present Value

Actuarial Present Value is the calculation of the current value of future cash flows or payments, taking into account factors such as mortality rates and interest.

Accumulated Benefit Obligation

The present value of future retirement benefits earned up to a certain point in time, under a defined benefit pension plan.

Prior Service Cost

Costs recognized when a pension plan initiates or changes, relating to services provided by employees in prior periods.