Entry Age Normal Cost Method (EANC)

The EANC funding method is a standard actuarial funding method. The annual cost of benefits under EANC is comprised of two components: normal cost, plus amortization of the unfunded liability.  The normal cost is most commonly determined on an individual basis, from a member’s age at plan entry, and is designed to be a level percentage of pay throughout a member’s career.

Definition courtesy of the Texas Pension Review Board

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