What does Actuarial Cost Method mean? Read on to discover the definition & meaning of the term Actuarial Cost Method - to help you better understand the language used in insurance policies.
Actuarial Cost Method
The actuarial cost method (also called "actuarial funding method") is a method employed by actuaries in charge of pension plans to calculate the cost of future benefits. It takes into account several factors, such as future wage increases and the current value of retirement benefits.
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