Accrued Monthly Benefit

DEFINITION of 'Accrued Monthly Benefit'

The earned pension benefit that will be paid to an employee at regular retirement age. The accrued monthly benefit is based on the employee's years of service through the accrual date, and is paid to pension holders each month following retirement.

BREAKING DOWN 'Accrued Monthly Benefit'

The accrued monthly benefit is based on the employee's years (or units) of service. Most pension plans can calculate the accrued monthly benefit that an employee will receive based on a number of different cut-off dates (the date the employee will terminate his or her employment and retire). In addition, many employers issue annual benefits statements that specify an employee's accrued monthly pension benefit .

RELATED TERMS
  1. Current Service Benefit

    The amount of pension benefit accrued by an employee who had ...
  2. Accrued Benefits

    Coverage earned by an employee on a pension plan, based on years ...
  3. Pension Fund

    A fund established by an employer to facilitate and organize ...
  4. Unit Benefit Plan

    An employer-sponsored pension plan that provides retirement benefits ...
  5. Advanced Funded Pension Plan

    A pension plan that is funded concurrently with the employee's ...
  6. Distress Termination

    A thinning of an employee base that takes place when a company's ...
Related Articles
  1. Financial Advisor

    How to Advise Clients with Frozen Pensions

    Financial advisors are on the front line in advising clients impacted by a frozen pension. Here's what they need to consider.
  2. Retirement

    America's Frozen Pension Dilemma

    Unfortunately, there are several factors that have eroded the presence of pension plans in America, and workers need to be prepared to replace that expected income for their retirement years. ...
  3. Retirement

    Chipping Away At The Pension Freeze Trend

    Learn five steps that'll put your retirement back into your own hands.
  4. Retirement

    Pension Plans: Pain Or Pleasure?

    Employees have a love/hate relationship with this retirement option.
  5. Retirement

    A Primer On Defined-Benefit Pension Plans

    Most of us will rely on a pension plan in the future, so it's best to know the details of the various plans before signing up.
  6. Retirement

    How Pensions, Social Security Differ

    Both pensions and Social Security provide an income stream to retirees, but they differ widely on how they're structured and funded. Here's the lowdown.
  7. Retirement

    Florida's Surprisingly Flexible State Retirement System

    Retired Florida employees can choose a 401(k)-style investment plan or a traditional pension.
  8. Retirement

    New 401(k) Pension Rollover Rule: Pros and Cons

    Is the new rule allowing participants to roll their 401(k) balances into pensions a good idea?
  9. Retirement

    How Safe Is Your Pension?

    A 2014 law permits some private pension plans to reduce benefits. How to figure out if your retirement income is endangered.
  10. Retirement

    Understanding Defined Benefit Pension Plans

    An employer-sponsored retirement plan where employee benefits are based on a formula using factors such as salary history and duration of employment.
RELATED FAQS
  1. What is the difference between accrued revenue and accrued interest?

    Find out about the difference between accrued revenue and accrued interest and how both of these concepts are used by businesses ... Read Answer >>
  2. The company I am receiving my pension plan from has just filed bankruptcy. Could ...

  3. What is the difference between accrued expense and accrued interest?

    Learn the difference between accrued expense and accrued interest, and find out how to calculate accrued interest on a short-term ... Read Answer >>
  4. Why do businesses calculate accrued expenses?

    Find out why businesses calculate accrued expenses, how they are applied and what circumstances give rise to accrual entries ... Read Answer >>
  5. What does it mean when interest "accrues daily?"

    Find out what it means when an interest-bearing account accrues interest daily and how different compounding periods change ... Read Answer >>
  6. How do you find accrued interest on a bond?

    Learn how to determine the accrued interest on a bond. The price in the secondary market reflects the accrued interest the ... Read Answer >>
Hot Definitions
  1. Bond Ladder

    A portfolio of fixed-income securities in which each security has a significantly different maturity date. The purpose of ...
  2. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  3. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  4. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  5. Front Running

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
  6. After-Hours Trading - AHT

    Trading after regular trading hours on the major exchanges. The increasing popularity of electronic communication networks ...
Trading Center