A corporation has a defined-benefit plan. A pension liability will result at the end of the year if the

Question

Dario Mosley

Law

1 July, 06:33

A corporation has a defined-benefit plan. A pension liability will result at the end of the year if the

+1

Answers (1)

Know the Answer?

Travis Barron · Answer 1

Answer: PBO (Projected benefit obligation) exceeds the future value of P/A

Explanation:

Defined benefit plan is the plan that is usually taken up by companies and organization as pension plan. This plan functions by calculating pension according to service length and salary at retirement time for the employees that is payed as pension payment.

According to t question, if PBO (projected benefit obligation) is more than future value of Pension Adjustment (P/A) then pension can be liable for an employee in year end.