Definition

Actuarial Valuation

The annual calculation of plan liabilities and required contributions for a defined benefit plan.

Full definition

An enrolled actuary performs an annual valuation of a DB or cash balance plan, computing required minimum contributions, maximum deductible contributions, and funded status. When a 401(h) account is in place, the valuation also addresses incidental-benefit compliance and 401(h) funding levels.

Related terms

Defined Benefit Plan

A qualified employer plan that promises a specified retirement benefit, typically based on pay and service.

401(h) Account

A separate sub-account inside a qualified pension or annuity plan used to pay certain retiree medical benefits.

Availability, tax treatment, and plan design depend on the facts and circumstances of the employer, plan document, participant group, and applicable law. 401h.com provides general educational information only — not tax, legal, actuarial, investment, or ERISA advice. Consult qualified tax, legal, actuarial, and plan professionals.