Similar to pension benefits, companies will accrue an expense for benefits earned by employees in that year and create a liability provision for those benefits that are to be provided in the future.

A pension liability is an obligation that a company has to pay retirement benefits to its employees in the future. This liability arises primarily from defined benefit plans, where the employer promises specific …

May 16, 2024 · The term pension liability does not refer to the total amount a company will have to pay in future pensions. Instead it refers to the difference between that amount and the amount of money …

Apr 6, 2025 · Pension liabilities arise when a company or government promises to pay its employees a fixed amount of money after their retirement. These obligations are often funded through …

Jul 30, 2025 · Of the three types of long-term liabilities that states regularly report on, unfunded pension obligations are the biggest in most states, followed by unfunded retiree health care and outstanding …

Nov 14, 2025 · What Is a Projected Benefit Obligation (PBO)? A projected benefit obligation (PBO) is an actuarial measurement of what a company will need at the present time to cover future pension...

Replaces requirements of Statements No. 25 and No. 50 relating to pension plans administered through trusts or equivalent arrangements. Objective is to improve financial reporting by state and local …

Aug 14, 2013 · In other words, a pension liability is the difference between the total amount due to retirees and the actual amount of money the company has on hand to make those payments. What …

Jun 27, 2023 · The pension liability is simply today’s values, or the “present value,” of all the future benefit payments projected to be paid by the plan to participants over the life of the plan.

A pension (/ ˈpɛnʃən /; from Latin pensiō 'payment') is a fund into which amounts are paid regularly during an individual's working career, and from which periodic payments are made to support the …