Benefit Allocation Method

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Dictionary Says

Definition of 'Benefit Allocation Method'

The benefit allocation method is a means of funding a pension plan where a single premium payment is made in order to fund a single unit of benefit for a specified period of time, typically one year (or other specifies unit of time) of recognized service with the employer. A pension plan is a type of retirement plan where an employer makes contributions to a fund that an employee receives upon retirement.
Investopedia Says

Investopedia explains 'Benefit Allocation Method'

The specifics for each company's benefit allocation method would be included in the company's employee benefits plan. With the benefit allocation method, the plan specifies that for each unit of service (each year, for example) an employee will receive a certain amount (either a dollar amount or a specified percentage of salary) towards an employee pension plan. Higher paid employees with longer service typically receive a greater benefit. The employer can then make a payment into a plan such as a deferred annuity on behalf of the employee.
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'Benefit Allocation Method'

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    http://www.investopedia.com/university/financialstatements/financialstatements7.asp
    ... the company with a future economic benefit beyond the ... is tricky because it is the
    allocation of a ... profits are directly impacted by the depreciation method. ...

  • CFA Level 1 Study Guide - Liabilities - Tax Deferred Liabilities ...

    http://www.investopedia.com/exam-guide/cfa-level-1/liabilities/tax-deferred-liabilities.asp
    ... Elasticity of Demand; 3.5 Elasticity of Supply; 3.6 Marginal Benefit and Marginal ...
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  • Introduction To Annuities: Variable Annuities | Investopedia

    http://www.investopedia.com/university/annuities/annuities6.asp
    ... cost averaging (DCA) programs are another method of increasing ... is moved monthly into
    the allocation of funds ... for the 7% guaranteed minimum benefit rider, which ...

  • CFA Level 1 Study Guide - Assets - Depreciation Accounting ...

    http://www.investopedia.com/exam-guide/cfa-level-1/assets/depreciation-accounting.asp
    ... Elasticity of Demand; 3.5 Elasticity of Supply; 3.6 Marginal Benefit and Marginal ...
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  • Get A Trading Referee And Improve Your Performance

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    ... so that they can see how the method works, the ... It can be of benefit to invite someone
    else ... to determining, achieving and maintaining optimal asset allocation. ...

  • How do segregated funds differ from mutual funds?

    http://www.investopedia.com/ask/answers/06/segfundsvsmutualfunds.asp
    ... as a simple and relatively inexpensive method for investing ... makes the decisions
    regarding asset allocation and other ... relating to the death benefit portion of ...

  • Diversifying A Concentrated Stock Position

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    ... The equity collar method involves the purchase of a ... collar, see Costless Collars:
    Because Asset Allocation Is Not ... The benefit of this approach is the immediate ...

  • Strategies For Withdrawing Retirement Income

    http://www.investopedia.com/articles/retirement/08/systematic-withdrawal.asp
    ... Most people have no systematic method - they merely ... annuity offers a guaranteed
    withdrawal benefit (GMWB) for ... This option allows for allocation for stocks and ...

  • Introduction To Institutional Investing

    http://www.investopedia.com/articles/financial-theory/11/introduction-institutional-investing.asp
    ... and regulation has limited the amount and method of disclosure ... Refer to 6 Asset
    Allocation Strategies That Work ... and promise to pay a retirement benefit in the ...

  • Economics Basics: Production Possibility Frontier, Growth ...

    http://www.investopedia.com/university/economics/economics2.asp
    ... This method of exchange is considered an optimal allocation of resources ... everything
    that it produces, so it will always be able to benefit from trade ...

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