alternative minimum cost method Definition | Business Dictionaries from AllBusiness.com
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Business Definition for: alternative minimum cost method
alternative minimum cost method

means of funding permitted under the Employee Retirement Income Security Act of 1974 (ERISA) . The administrator of a pension plan can comply with required minimum funding standards by electing an alternative cost method under which the normal cost is the lesser of the normal cost (1) according to the actuarial cost method of the plan, or (2) according to the accrued benefit cost method without benefit projections.

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