past service benefit

past service benefit definition - business

past service benefit

Retirement plan credit accorded an employee for service prior to the effective date of the plan or prior to the date of participation of the employee. Past service benefits may value past service less than future service (a year of past service does not improve benefits as much as a year of future service), and acquiring past service credit may require a payment by the employee.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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