Settlement rate

(redirected from Settlement Rates)
Also found in: Encyclopedia.

Settlement rate

The rate suggested in Financial Accounting Standards Board (FASB) 87 for discounting the obligations of a pension plan. The rate at which the pension benefits could be effectively settled if the company sponsoring the pension plan wishes to terminate its pension obligation.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Settlement Rate

The suggested way to calculate the net present value of a pension plan. The settlement rate is devised by the Financial Accounting Standards Board and is used by companies who wish to discontinue their pension plans. That is, a company may use the settlement rate to calculate lump sum payments to plan participants to relieve itself of the future liability of making payments on the pension over time.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
There was a pattern of long-run labour relations stability as demonstrated by adjustments to the length of collective agreements, higher overall settlement rates, and the decline in wage settlements and strike activity.
The relationships between settlement rates on plates and the yield on ropes at the end of the experiment were evaluated using correlative analyses.
The fall in worldwide incoming traffic could be because of rise in APC (access promotion contribution) alter in FY13 from 1.25 US cents to 2.90 US cents which discouraged LDI operators to give lower settlement rates to attract extra incoming traffic in Pakistan.
The current financial position suggests enough funding exists for this "subject to settlement rates on grievance claims".
As the settlement rate is the payment required to a foreign partner to complete a service in that country, during the past 30 years, costs of technology, including telecom switching technology and call completion have been significantly lower than the compensating settlement rates.
dollar compared to previous day's settlement rates while it appreciated its value against major European currency Euro, although it depreciated against British pound.
"We also like telecoms, where the market is conservatively holding off on pricing in higher margins, which can result from an understanding on international incoming settlement rates."
Calls are being sold at the rates lower than lowest limit of permissible range of Approved Settlement Rate. The authority has also admitted that due to intense competition in LDI segments the LDI operators are offering considerably lower settlement rates then the approved ASR.
During the construction of embankment (the first 110 days), the maximum settlement rates at section K63 + 056 and K63 + 076 were 0.6 cm and 0.4 cm per day, respectively.
Effective on the payment of this dividend, an adjustment will be made to the settlement rates and certain other terms of Citi's T-DECS.
The board of directors of Citigroup Inc (NYSE:C), a banking institution, approved a common dividend of USD0.01 per share of stock that will make effective an adjustment to the settlement rates and certain other terms of Citi's T-DECS Prospectus dated 16 December 2009 and the related Current Report on Form 8-K filed on 24 December 2009, it reported on Tuesday.