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Meaning / Definition of
Funding Plan (pension Benefits)
Categories: Economics,
The timing of payments of contributions with the aim of meeting the cost of a given set of benefits under a defined benefit scheme. Possible objectives of a funding plan might be that, if the actuarial assumptions are borne out: a) a specified funding level should be reached by a given date; b) the level of contributions should remain constant, or should after a planned period be the standard contribution rate required by the valuation method used in the actuarial valuation.
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