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 .

  1. Accrued Benefits

    Accrued benefits are those benefits earned or accumulated by ...
  2. Accrue

    The ability for something to accumulate over time. In finance, ...
  3. Distress Termination

    A thinning of an employee base that takes place when a company's ...
  4. Past Service

    Service to an employer that is recognized for the defined benefit ...
  5. Benefit Allocation Method

    The benefit allocation method is a means of funding a pension ...
  6. Other Post-Retirement Benefits

    Benefits, other than pension distributions, paid to employees ...
Related Articles
  1. 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. ...
  2. Retirement

    Pension Plans: Pain Or Pleasure?

    Employees have a love/hate relationship with this retirement option.
  3. Financial Advisor

    Understanding Rules on Defined Benefit Pension Plans

    Defined benefit plans offer advantages to both employers and employees. Employers must understand the federal tax rules when establishing these plans.
  4. Managing Wealth

    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.
  5. Retirement

    Florida's Surprisingly Flexible State Retirement System

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

    What's Accrued Interest?

    Accrued interest has two meanings. In accounting, it is interest that has been earned, but the time for payment has not yet occurred.
  7. Retirement

    How to Spot Pension Fraud Before It Hurts You

    Don't let pension fraud threaten your livelihood after retirement. Here's what to watch out for.
  8. Retirement

    How Congress Retirement Pay Compares to the Overall Average

    There are more retirement plan options for a member of the United States Congress than for the average citizen.
  9. Retirement

    Retirement Plans From Around The World

    How does the rest of the world stack up against the U.S. when it comes to planning and saving for retirement?
  10. Retirement

    5 Big Companies That Have Cut Out Pension Plans

    Companies are putting the responsibility of saving for retirement on the employee.
  1. 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 >>
  2. How do you record adjustments for accrued revenue?

    Understand what accrued revenue is and what it's used to measure. Learn how an accountant would record an adjustment to accrued ... Read Answer >>
Hot Definitions
  1. Perfect Competition

    Pure or perfect competition is a theoretical market structure in which a number of criteria such as perfect information and ...
  2. Compound Interest

    Compound Interest is interest calculated on the initial principal and also on the accumulated interest of previous periods ...
  3. Income Statement

    A financial statement that measures a company's financial performance over a specific accounting period. Financial performance ...
  4. Leverage Ratio

    A leverage ratio is any one of several financial measurements that look at how much capital comes in the form of debt, or ...
  5. Annuity

    An annuity is a financial product that pays out a fixed stream of payments to an individual, primarily used as an income ...
  6. Restricted Stock Unit - RSU

    A restricted stock unit is a compensation issued by an employer to an employee in the form of company stock.
Trading Center