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Flat benefit formula |
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Definition of Flat benefit formulaFlat benefit formulaMethod used to determine a participant's benefits in a defined benefit plan by
Related Terms:Accidental Death Benefit (ADB)Coverage against accidental death usually payable in addition to base amount of coverage. Accumulated Benefit Obligation (ABO)An approximate measure of the liability of a plan in the event of a Automatic Benefits PaymentAutomatic payment of moneys derived from a benefit. BenefitAn instruction that pays a cash amount upon the occurrence of a specific event. Benefit Ratio MethodThe proportion of unemployment benefits paid to a company’s Benefit ValueThe amount of cash payable on a benefit. Benefit Wage Ratio MethodThe proportion of total taxable wages for laid off ![]() benefits-provided rankinga listing of service departments in an order that begins with the one providing the most service cafeteria plan a “menu” of fringe benefit options that includecash or nontaxable benefits Cost-Benefit AnalysisThe calculation and comparison of the costs and benefits of a policy or project. cost-benefit analysis the analytical process of comparing therelative costs and benefits that result from a specific course Cost-benefit ratioThe net present value of an investment divided by the investment's initial cost. Also called Cost-Push InflationInflation whose initial cause is cost increases rather than excess demand. See also demand-pull inflation. Death BenefitAmount paid on death of an insured. Defined benefit planA pension plan in which the sponsor agrees to make specified dollar payments to Defined Benefit PlanA pension plan that pays out a predetermined dollar ![]() DeflationA sustained decrease in the price level. The opposite of an inflation. DeflatorA price index used to deflate a nominal value to a real value by dividing the nominal value by the price deflator. Demand-Pull InflationInflation whose initial cause is excess demand rather than cost increases. See also cost-push inflation. DisinflationA reduction in the rate of inflation. Equivalent annual benefitThe equivalent annual annuity for the net present value of an investment project. Flat price (also clean price)The quoted newspaper price of a bond that does not include accrued interest. Flat price riskTaking a position either long or short that does not involve spreading. Flat trades1) A bond in default trades flat; that is, the price quoted covers both principal and unpaid, Flattening of the yield curveA change in the yield curve where the spread between the yield on a long-term Formula basisA method of selling a new issue of common stock in which the SEC declares the registration GDP DeflatorPrice index used to deflate nominal GDP to real GDP by dividing nominal GDP by the GDP deflator. HyperinflationExtremely high inflation. Incremental costs and benefitsCosts and benefits that would occur if a particular course of action were InflationThe rate at which the general level of prices for goods and services is rising. inflationRate at which prices as a whole are increasing. InflationA sustained increase in the general price level. The inflation rate is the percentage rate of change in the price level. Inflation-escalator clauseA clause in a contract providing for increases or decreases in inflation based on Inflation riskAlso called purchasing-power risk, the risk that changes in the real return the investor will Inflation TaxThe loss in purchasing power due to inflation eroding the real value of financial assets such as cash. Inflation uncertaintyThe fact that future inflation rates are not known. It is a possible contributing factor to Living BenefitSome insurance companies include this benefit option at no cost to their policy holders. The insurer considers on a case to case basis, the need for insurance funds before death. If the insured can demonstrate a shortened life of less than two years and with some insurers one year, the insurer will consider releasing up to 50% or a maximum of $100,000 of the life insurance coverage held by the insured. Not all insurers offer this benefit for free. The need has resulted in specific stand alone living benefit/critical illness policies coming into existence. Look under "Different types of Life Insurance" for further information. You might have heard of "Viatical Settlements", the practice of seriously ill people selling the rights to their life insurance policies to third parties. This practice is common in the United States but has not caught on in Canada. Net benefit to leverage factorA linear approximation of a factor, T*, that enables one to operationalize the Pension Benefit Guaranty Corporation (PBGC)A federal agency that insures the vested benefits of StagflationSimultaneous existence of high inflation and high unemployment, or simultaneous existence of rising inflation and r sing unemployment. Target Benefit PlanA defined benefit plan under which the employer makes tax benefit (of depreciation)the amount of depreciation deductible for tax purposes multiplied by the tax rate; Unit benefit formulaMethod used to determine a participant's benefits in a defined benefit plan by Workers' Compensation BenefitsEmployer-paid insurance that provides their employees with wage compensation if they are injured on the job. Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |