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.
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 ?
Gains and losses include changes in the value of plan assets and in the amount of projected benefit obligations (PBO).
As a minimum, amortization of a net gain or loss included in AOCI (excluding asset gains and losses not yet reflected in market-related value) shall be included as a component of net pension cost for a year if, as of the beginning of the year, that net gain or loss exceeds 10% of the greater of the projected benefit obligation or the market-related value of plan assets.
First, the projected benefit obligations among the public firms are relatively large.
The same effect occurs when, holding the debt level of the plan sponsor constant, the projected benefit obligation is larger.
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. Past service liabilities are the present value of retirement benefits earned in all earlier years, discounted at the same high-grade bond yield used in Step One.
Notice that the discounting rate to determine the present value of projected benefit obligations is the same as the rate by which they are multiplied to calculate this year's cost.
87, the Board recognized the logic of reflecting plan assets and projected benefit obligations on the balance sheet.
If pension plan assets and the projected benefit obligations of General Motors were included in its balance sheet at 12/31/91 on a net basis, shareholders' equity would decrease by $1.8 billion.