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Projected Benefit Obligation

   Also found in: Acronyms 0.01 sec.
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.


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