Wiley GAAP 2008

Definitions of Terms

Accumulated plan benefits or benefit obligations	Benefits that are attributable to services rendered by employees before the date at which the actuarial present value of the plan obligation is computed.
Defined benefit plan	A plan that promises stated or otherwise determinable benefits to participants based on factors such as compensation, years of service, and age.
Defined contribution plan	A plan in which benefits are based on amounts contributed, investment experience, and allocated forfeitures, net of administrative expenses. Each participant's benefits are computed based on his or her individual account.
Health and welfare benefit plan	Plans that provide benefits such as medical, dental, visual, or other health care, insurance, disability, vacation, education, or dependent care.
Net assets	The residual interest in the assets of an employee benefit plan that remains after deducting its liabilities. The liabilities of a plan do not include its accumulated plan benefits (defined benefit pension plans) or its benefit obligation (defined benefit health and welfare plans).
Plan sponsor	The company, association, employee group, or other group of representatives that established or maintains the plan.