minimum pension liability

minimum pension liability definition - business

minimum pension liability

The liability that represents the amount by which an organization's accumulated pension benefits exceed the fair market value of its pension plan assets. The calculation is considered the minimum liability because it calculates benefits using current rather than projected future salaries that are likely to be higher.

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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