User:Largoplazo/Actuarial cost method

An actuarial cost method is a method of spreading the cost of a retirement plan's future benefit payouts over some period of time for purposes of funding or accounting for that cost. An actuarial cost method is used in the performance of an actuarial valuation of a plan. The two primary figures produced by application of an actuarial cost method are the normal cost (the portion of the cost allocated by the method to the current year) and the actuarial accrued liability (the portion allocated to all previous years).