Settlement Rate Definition

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Definition Of Settlement Rate:

1. A calculated rate for settling pension benefits in the event that a company decides to stop offering their employees a pension.
Guidelines and standards for this rate are set by FASB 87; companies usually take this into consideration when calculating this rate. 2. Fee assessed by a US telecommunications carrier to pay its foreign counterpart when US-originated calls are terminated or ended. This fee depends on the length of a call and is assessed on a per-minute basis.

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