aggregate cost definition
Aggregate Level Cost Method. DEFINITION of 'Aggregate Level Cost Method'. An acturial cost method that tries to match and allocate the cost and benefit of a pension plan over the span of the plan's life. The Aggregate Level Cost Method typically takes the present value of benefits minus asset value and spreads the excess amount over the future payroll of the participants.
Definition: Aggregate Level Cost Method. This method is mainly used in the context of pension plans for calculation of the cost and benefit associated with a particular pension plan. An aggregate level cost method calculates the cost and benefit of a particular pension plan over the entire term of the planâs life. It is different from the individual level cost method. 1) All benefits of the pension plan are analyzed as follows: the total amount, total cost and the time of (contingent) payment.