Question #26
Reading: Reading 9 Employee Compensation - Post-Employment and Share-Based
PDF File: Reading 9 Employee Compensation - Post-Employment and Share-Based.pdf
Page: 9
Status: Correct
Correct Answer: A
Question
The projected benefit obligation (PBO) is defined as the:
Answer Choices:
A. actuarial present value of all future pension benefits earned to date based on expected future salary increases
B. actuarial present value of all future pension benefits earned to date and based on current salary levels
C. actuarial future value of all post-retirement healthcare benefits earned to date
Explanation
The projected benefit obligation (PBO) is defined as the actuarial present value of all
future pension benefits earned to date based on expected future salary increases.