The Importance of Pension Fund Accounting
, Pension fund accounting involves all the formulas and calculations used to determine the service cost of a pension plan. Employees are guaranteed a lifetime income of their pension plan starting from the age of retirement. After years of the service, the responsible and retired employee that had adequately planned and saved for their future can look forward to a comfortable retirement. During the course of employment, any promotion or demotion that impacts on the employee’s salary is taken into consideration and this will have an impact in the employee’s pension income. The pension fund accountants use a method called Accral [...]