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Accumulated Benefit Obligation

   Also found in: Acronyms 0.01 sec.
Accumulated Benefit Obligation (ABO)
An approximate measure of the liability of a pension plan in the event of a termination at the date the calculation is performed. Related: Projected benefit obligation.


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Most of the major credit rating agencies say that their models already adjust the reported balance sheets for the full value of the pension's projected benefit obligation (PBO) or accumulated benefit obligation (ABO) liability, and either some or all of the value of the retiree medical accumulated postretirement benefit obligation (APBO) liability.
25% used to establish the beginning of the year accumulated benefit obligation changed to a discount rate of 5.
1997 1996 Service cost $16 $16 Interest cost of accumulated benefit obligation 40 40 Net amortization and deferral (6) (5) Net periodic postretirement cost $50 $51
 
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