Projected benefit obligation

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Projected benefit obligation (PBO)

A measure of a pension plan's liability at the calculation date assuming that the plan is ongoing and will not terminate in the foreseeable future. Related: Accumulated benefit obligation.

Projected Benefit Obligation

An estimate of the present value of the future liability of an employee's pension. The projected benefit obligation assumes that the employee will continue to work and make contributions to the pension plan. It also assumes that contributions will increase as the employee's salary also increases. See also: Accumulated benefit obligation.
References in periodicals archive ?
In addition to the difference in economic growth rates, the APBO markets are much more open today than they were 25 years ago," Drobnick said.
FAS 141 carries forward the specific measures of fair value from APBO 16.
Sustainability and green technology business opportunities in Asia will be an important theme at APBO 2011.
Please provide the following information regarding the assumptions used to compute the net periodic postretirement benefit cost and APBO.
APBO #15, as amended and interpreted, has been criticized as having complex and arbitrary provisions.
The APBO is the actuarial present value of future benefits based on employees' service rendered to the measurement date.
Authoritative support for this position can be found in APBO No.
The APBO is the actuarial present value of all future benefits based on employees' service rendered up to the measurement date.
Ernst & Young has advised the Company that this latter change was incorrect because it constituted a change to a less preferable method of accounting and should have been treated as a change in accounting principle under APBO 20.
The annual OPEB expense in this example is the total of the service cost, the interest on the APBO and the amortization of the transition obligation.
The provisions of the Act lowered the APBO by approximately $12 million that is being treated as a negative prior service cost that was amortized beginning on March 8, 2004.
Included in the EPBO is the APBO plus the actuarial present value of expected future service costs of those employees who have not yet retired and reached full eligibility for benefits.