Accumulated Benefit Obligation


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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.

Accumulated Benefit Obligation

The present value of the future liability of an employee's pension, assuming that the employee is fired or retires on the date the calculation is performed. For example, the accumulated benefit obligation is what the pension fund must pay the employee should the employer make no further contributions and the employee retires immediately. The accumulated benefit obligation therefore assumes that the employee will make no further contributions to the pension plan. See also: Projected Benefit Obligation.
References in periodicals archive ?
The table reports the name of each firm along with measures that describe the features of the pension plan: l) the size of the projected benefit obligation in relation to invested capital, 2) the ratio of plan assets to the accumulated benefit obligation, and 3) the percentage of pension fund assets invested in equities.
The aggregate pension accumulated benefit obligation and aggregate fair value of plan assets for pension plans with accumulated benefit obligations in excess of plan assets.
106 ("Employers' Accounting for Post-retirement Benefits Other Than Pensions"), which requires the accrual of costs for retirees' health and other non-pension post-retirement benefits and the recognition of an unfunded and unrecognized accumulated benefit obligation for these benefits.
plan's assets and projections of benefit obligations on an accumulated benefit obligation or ABO basis.
Based on current expectations regarding the size of the gap between pension plan assets and the accumulated benefit obligation, Continental estimates that more than $200 million in cash contributions will be necessary in 2003.
The charge is a result of a reduction in the assumed discount rate applied to the accumulated benefit obligation under the Company's pension plans and a reduction in the market value of pension assets.
25 percent on the projected and accumulated benefit obligations would be to decrease or even eliminate the underfunded portion of Mottins' retirement plans.
DB plan, the funding ratio on accumulated benefit obligations increased from 95 percent at the start of 2004 to 99 percent at the beginning of 2005, while funding of projected benefit obligations rose from 88 percent to 91 percent.
Lincoln's defined benefit plan is well-funded, with approximately $550 million in assets at the end of 2005, compared with accumulated benefit obligations of $562 million.