PVFB definition

PVFB means the present value of all benefits guaranteed at issue assuming future guaranteed maturity premiums are paid by the policyowner and taking into account all guarantees contained in the policy or declared by the insurer.

Examples of PVFB in a sentence

• The employer portion of this PVFB allocated to a valuation year is the Normal Cost.

• The portion of this PVFB not provided for at a valuation date by the PV of Future Normal Costs or future member contributions is the Accrued Liability (AL).

• The Actuarial Accrued Liability is the portion of the PVFB allocated to past service by the Plan’s funding method (see the Section titled “Actuarial Cost Method and Actuarial Assumptions”).

• A change in interest factors has an impact to the calculation of PBGC’s PVFB, and the impact will be reflected in the “Due to change in interest factors.” The table below summarizes the hypothetical results of using a 100 basis point difference causing the PVFB liability to increase (decrease) with a corresponding decrease (increase) in the interest factors.Furthermore, any such hypothetical change in the PVFB liability would have a corresponding effect on “Due to change in interest factors” expense.

• Under this method, the Present Value (PV) of Future Benefits (PVFB) of each individual included in the actuarial valuation is allocated on a level basis over the earnings (or service) of the individual between entry age and the assumed exit age(s).

• Changes in prior years’ terminations result from revaluations of DOPT assets (e.g., as identified in the plan asset reconciliation process), changes in plan recoveries at DOPT (e.g., from an estimated recovery amount to an expected recovery amount), and changes in DOPT PVFB (e.g., new liability data) for plans with termination dates prior to the current fiscal year in which they were added to PBGC’s inventory of terminated plans.

• The Board may limit Employer’s contributions to the CEPPT to the amount necessary to fully fund the actuarial present value of total projected benefit payments not otherwise prefunded through the applicable Employer Pension Plan (Unfunded PVFB), as set forth in Employer’s cost report for the applicable period.

• The actuarial accrued liability (AAL) for each member is the difference between their present value of future benefits (PVFB), based on the tier of benefits that apply to the member, and their present value of future normal costs determined using the normal cost rate described in item c above.

• If Employer’s contribution would cause the assets in Employer’s Prefunding Account to exceed the Unfunded PVFB, the Board may refuse to accept the contribution.

• If, for any reason, the Board terminates the CEPPT, the assets in Employer’s Prefunding Account shall be paid to Employer to the extent permitted by law and Code Section 115 after retention of (i) an amount sufficient to pay the Unfunded PVFB as set forth in a current defined benefit pension plan(s) cost report prepared in compliance with ASOP and the requirements of Paragraph C(1), and (ii) amounts sufficient to pay reasonable administrative costs of the Board.