Accrual Rate

Accrual Rate

The interest rate that is charged on a loan or bond but is not paid until a later date. For example, if one pays the interest on one's mortgage every month, the accrual rate is the interest rate charged to the principal of the mortgage each day of a month until the payment is made.
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The shift to a hybrid scheme will see staff share future pension risk, while it will mean a reduced accrual rate for future service and see employees wait five years to join, instead of the current three.
National officer Heather Wakefield said the proposals would increase pension contributions, worsen the accrual rate and raise the retirement age in the Local Government Pension Scheme (LGPS).
Gail responded: 'The quality of any career average scheme depends crucially on what accrual rate is specified and at what rate benefits once accrued are revalued.
The airline also said it wanted to introduce a slower accrual rate, a cap on pension rises, and proposed paying pounds 500 million to tackle the deficit.
A defined benefit scheme can opt out provided it is either contracted out or have a minimum pension accrual rate of 1/120ths End of default retirement age Another major shake-up will affect the retirement age of 65.
Typical measures proposed included increasing compulsory member contributions, raising the retirement age at which employees would be eligible for pension draw down, and reducing the benefit accrual rate for members.
The government's final proposal set the accrual rate - the rate at which the value of a pension builds up - at 1/57ths of salary each year - a 14% improvement of the 1/65ths in the government's initial proposal.
The airline said it hoped to clear the pounds 1 billion deficit, as measured by actuaries three years ago, through a combination of higher retirement ages, a slower accrual rate and a cap on pension increases.
Very occasionally a senior executive may have a separate contract that sets out and guarantees the accrual rate of the pension scheme and the earnings to which this relates.
Prospect said that among the improvements in the new offer were a faster accrual rate for employees, a floor below which the employer's contributions will not drop, further negotiations on the increase in contributions and their impact in Years Two and Three, and extension and improvement of Fair Deal pensions protection for workers transferred out of the public sector.
07 per diluted share, in connection with a reduction of the Company's estimated tax-rate due to the enactment of a tax law change, which reduced the Company's income tax accrual rate from 43.
A Ministers said they made a "considerably" better offer earlier this month, changing the accrual rate from one 65th of salary to one 60th, which they said was a third more generous.