Amortization of UAAL - Minnesota Legislature（摊销UAALu2014u2014明尼苏达州议会）.pdfVIP

Background Information on the Amortization of Defined Benefit Retirement Plan Unfunded Actuarial Accrued Liabilities 1. Determination of Defined Benefit Retirement Plan Actuarial Accrued Liability. Defined benefit retirement plans, which base retirement annuities and benefits on a formula or some determinant other than account accumulations, will have an accrued actuarial liability that will frequently be a different amount than the value of plan assets. In a defined benefit retirement plan, the actuarial accrued liability is determined by a periodic actuarial valuation, generally prepared by an actuary who is credentialed by the Society of Actuaries, a professional organization of life (pension plan and insurance company) actuaries and casualty actuaries. Defined benefit retirement plan actuarial accrued liabilities are determined utilizing one of several developed actuarial valuation methods and utilizing various actuarial assumptions. 2. Defined Benefit Retirement Plan Unfunded Actuarial Accrued Liabilities. When pension plan actuarial accrued liabilities exceed pension plan assets, the plan has an unfunded actuarial accrued liability, which represents the cumulative total of past departures from sound full funding practices, such as past actuarial experience losses, past insufficient contributions, past benefit increases, or a combination of the three. 3. Unfunded Actuarial Accrued Liability Amortization Contributions. If a retirement plan has an unfunded actuarial accrued liability, sound pension funding practices require that the unfunded actuarial accrued liability be paid or amortized over a reasonable period of time. The amortization of pension plan unfunded actuarial accrued liabilities depend on the amortization period, measure