Unit benefit formula(redirected from Unit Benefit Approach)
Unit benefit formula
Method used to determine a participant's benefits in a defined benefit plan. Involves multiplying years of service by the percentage of salary.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
Unit Benefit Formula
In a defined-benefit plan, a method used to determine how much money the beneficiary receives each month. A defined-benefit plan is a retirement plan or other annuity in which the annuitant knows in advance how much he/she will be entitled to when he/she begins receiving payments. The unit benefit formula is thus stated in the annuity contract and is usually some function of the amount the annuitant contributed combined with the number of years he/she contributed.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved