ABSTRACT
A less generous approach to the definit ion of accrued l iabi l i ty
wou ld replace the final salary element of the benefit definitions by
the salary at the va luat ion date t. Th is is the approach used i n the current unit method of funding. It is closer to the concept of accrued
rights which often applies i n a winding-up situation, a l though this
wi l l depend on the trust deed or scheme rules. It wou ld also correspond
to typical rules for determining preserved rights for early leavers. If
preserved rights have to be revalued, wi th a view to mainta in ing
their real value dur ing the years before they come into payment, or
when the pensions are i n payment (because of legal requirements or
because of a requirement i n the scheme rules), it w o u l d normal ly be
appropriate to a l low for this i n assessing the value of the accrued
l iabi l i ty .
