Benefit Formula

Benefit Formula

How benefits for an insurance policy, government program or annuity are calculated. The benefit formula varies according to the program or annuity; it may be based on one's most recent salary, an average of one's salary over a certain number of years and/or the performance of some stated portfolio of investments.
References in periodicals archive ?
The benefit formula typically centers on three key factors for replacing income: pay history, age and years of service.
Calculated using the CalSTRS pension benefit formula.
Options include changing the benefit formula in traditional retirement plans, pursuing alternative plan designs, and the controversial possibility of extending Social Security to all government employees (many of whom are not covered currently).
In addition to our terrific advocacy work on the R & S Plan, the program's trust committee has implemented changes to reduce the minimum allowable benefit formula, added options for employee-required contributions and eliminated requirements for mandatory funding of benefits for employees subject to a two-year or minimum-age-21 eligibility period.
By 2087, beneficiaries will receive 28 percent less than calculated under the current benefit formula.
Here are some common pension mistakes to watch for: company forgot to include commission, overtime pay, or bonuses in determining your benefit level; your employer relied on incorrect Social Security information to calculate your benefits; somebody used the wrong benefit formula (i.
In a similar case involving an ERISA plan benefit formula, the 4th Circuit in 2009 ruled against the plan sponsor, Fleet Reserve Association, a not-for-profit advocacy group for current and former enlisted personnel in the U.
Because the composite effect of each system is hard to discern by simply looking at the benefit formula, we examine patterns of pension wealth accumulation by age of separation.
It also has sun protecting and skin perfecting technology, is Olay's first anti aging moisturiser with a triple benefit formula giving skin a touch of sunshine.
Six case studies (France, Germany, Italy, Spain, the UK, and the USA) each offer a detailed explanation of that country's social security system, including institutional characteristics (eg, contribution rates, benefit formula and indexation, eligibility requirements, and official retirement age), recent reforms, and a long-run forecast of its sustainability.
B denotes the set of years between age sixty and the year prior to retirement ill which a year of unindexed earnings replaces a year of indexed earnings in the benefit formula.
Aside from the manifold assumptions used to develop empirically-based target wage replacement rates, the statutory benefit formula used in State programs "of necessity includes more factors than the wage replacement rate.