Projected benefit obligation

(redirected from Projected Benefit Obligations)

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 ?
Under its method of accounting for pension and other postretirement benefit plans, the company recognizes into income, as a fourth quarter adjustment, any unrecognized actuarial gains and losses that exceed 10% of the larger of projected benefit obligations or plan assets (the corridor).
First, the projected benefit obligations among the public firms are relatively large.
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.
Calculate the interest costs on past service liabilities, technically known as projected benefit obligations.
87, Employers' Accounting for Pensions, companies disclose the market values of pension plan assets and the projected benefit obligations of the plans but do not recognize them on their balance sheets.