Minimum Funding Standard

Minimum Funding Standard

Minimum Funding Standard means:
the minimum amount an employer must contribute at any given time to properly fund a qualified plan, especially a defined-benefit pension plan. Two basic actuarial methods apply to a defined-benefit plan: the accrued-benefit and the projected-benefit methods. For a plan year, a funding standard amount must be charged with the normal cost and an amount to amortize unfunded past service liability. IRC (check if this IRC provision is current here) §412.


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