Projected benefit obligation

(redirected from Accumulated Postretirement Benefit Obligation)
Also found in: Acronyms.

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 ?
The estimated effects of the subsidy, retroactive to January 1, 2004, are reflected in actuarial loss in the accumulated postretirement benefit obligation and net periodic postretirement benefit costs.
2004 Decrease in the accumulated postretirement benefit obligation $12.
Prior to an employee's full eligibility date, the accumulated postretirement benefit obligation as of a particular date for an employee is the portion of the expected postretirement benefit obligation attributed to that employee's service rendered to that date; on and after the full eligibility date, the accumulated and expected postretirement benefit obligations for an employee are the same.
For defined benefit postretirement plans, the benefit obligation is the accumulated postretirement benefit obligation.
TABLE 3 RECONCILIATION SCHEDULE Pension Plan Projected benefit obligation $(38,575) Plan assets at fair value 31,000 Funded status (7,575) Unrecognized net loss 3,482 Unrecognized prior service cost 2,712 Unrecognized net obligation 2,830 Prepaid pension cost $ 1,449 Health Care Plan Accumulated postretirement benefit obligation $(54,096) Plan assets at fair value -0- Funded status $(54,096) Unrrecognized net gain or loss -0- Unrecognized prior service cost 3,402 Unrecognized net obligation 40,991) Accrued postretirement cost $ (9,703) CALCULATIONS: Unrecognized Net Loss Pension Unrecognized net loss Jan.
On January 1, 1992, the date the example company first applied the health care standard, the accumulated postretirement benefit obligation was $42,568.
It includes the accumulated postretirement benefit obligation (APBO) plus the actuarial present value of expected future service costs of active employees who have not yet reached full eligibility.
The curtailment expense included recognition of the change in the projected benefit obligation or accumulated postretirement benefit obligation, as well as recognition of a portion of the unrecognized prior service cost.
The board acknowledges this difference in paragraph 66 of the ED by proposing sensitivity disclosures--the effect on the accumulated postretirement benefit obligation of a 1% change in the healthcare cost trend.
She recalculates the projected pension and accumulated postretirement benefit obligations utilizing the 2005 discount rate assumptions and realizes that the total effect of the 0.

Full browser ?