projected benefit obligation

projected benefit obligation definition - business

projected benefit obligation

The present value, as of the calculation date, of all promised future benefits. The obligation is based on estimated future benefit and salary levels and on the assumption the plan will not be terminated. The net liability of a plan equals the amount by which the projected benefit obligation exceeds plan assets.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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