ACTUARIAL EQUIVALENT
The actuarial equivalent is commonly employed for the application of some measurement to the two benefit plans for the assessment of whether the resulting values are sufficiently close. Most of the time, two or more payment streams of the benefit plans have the same present value depending on the actuarial assumptions.
For example, the actuarial equivalence measurements may be employed for the comparison of one particular benefit plan to a standard plan, in order to assess if the plan may be compared in terms of coverage.
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