Actuarial methods in defined benefit pension plans primer

This Employee Benefit Plan Audit Quality Center (EBPAQC) primer was developed to provide Center a general understanding of the actuarial method and assumptions used in measuring the actuarial present value of accumulated plan benefits under FASB ASC 960, Employee Benefit Plan Accounting—Defined Benefit Pension Plans.

This primer addresses:

• accumulated plan benefits

• the actuarial method

• actuarial valuation

• actuarial valuation inputs (including plan provisions and census data)

• actuarial assumptions (including economic and demographic assumptions)

• the actuarial valuation report