Projected benefit obligation

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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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
Accumulated postretirement benefit obligation. The actuarial present value of benefits attributed to employee service rendered to a particular date.
Interest cost reflects the imputed growth during the period in the portion of the EPBO that has been "earned" by employee services provided as of a particular date - referred to as the accumulated postretirement benefit obligation (APBO) - using the assumed discount rate.
* Twenty of the 400 companies studied reported a single estimate of their Accumulated Postretirement Benefit Obligation (APBO).
Any changes between the provisions of the substantive plan at the beginning of the period used in the calculation of net periodic postretirement benefit costs and the substantive plan used in the calculation of the accumulated postretirement benefit obligation (APBO) at the disclosure date.
Thus, at the time when increases are anticipated the accumulated postretirement benefit obligation (APBO) may dramatically increase and annual expense under Statement 106 may go up by 100 percent or more !
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.

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