Accrued benefits


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Related to Accrued benefits: Accrual Rate

Accrued benefits

The pension benefits earned by an employee according to the years of the employee's service.

Accrued Benefits

The pension, vacation, or other benefits that an employee earns in the course of a year. This is effectively income that the employee is not paid immediately. For example, an employee may accrue vacation benefits, but rather than receiving a check for the benefits, he continues to be paid his regular salary when he goes on holiday. If the employee is terminated or retires, he must be paid all previously unpaid accrued benefits.
References in periodicals archive ?
Certainly from the perspective of many stakeholders (plan sponsors along with new and future plan members), permitting conversion of accrued benefits would generally be preferable, as that could address any legacy issues.
1) The IRS has provided guidance as to when a change in actuarial factors will indirectly affect accrued benefits, as well as acceptable methods for preventing a violation of the vesting rules as a result of such a change.
ERISA Section 203(a)(1) states that an employee's accrued benefit derived from his own contributions must, at all times, be nonforfeitable.
For cash balance or hybrid plans, the accrued benefit may be expressed as an annuity payable at retirement age, the balance of a hypothetical account, or the current value of the cumulative percentage of the employee's final compensation.
If the salary increases of an employee are anticipated to be relatively small, the accrued benefit will increase marginally because of the change in the employee's final average pay during the DROP period.
One of the most controversial issues arises when the accrued benefits of the defined-benefit plan exceed the amount determined under the cash-balance formula.
With the hospital's deal, nearly 30 employees in the therapy services department will lose seniority, sick time and other accrued benefits, though they will be able to cash out accrued vacation time and holidays.
The bond was placed in the worker's account and its amount was set so that, at retirement, it would be equal to the worker's accrued benefits under the old system.
Employers must treat reemployed employees as if they had not incurred breaks n service for purposes of pension plans, include military service for purposes of vesting and benefit accrual, and provide accrued benefits from employee contributions to the extent that employees pay them.
Accrued benefits will include greater flexibility and increased procurement capability.
People who have no experience with benefit administration matters fail to understand that accrued benefits are only a measure of what would be paid if the employees quit on the date of measurement.