For a given employee group, the accumulated benefit method of funding for defined benefit plans results in increasingly larger contributions to the fund over time when compared to both the projected unit credit and level contribution methods.Assume that average salaries increase over time.

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The accumulated benefit method typically involves contributions that are relatively level or may decrease over time as the plan matures and assets grow, whereas the projected unit credit method often results in contributions that increase over time due to incorporating future salary increases into the calculation. The level contribution method aims to keep contributions constant throughout the funding period.

For a Given Employee Group, the Accumulated Benefit Method of Funding