Dictionary of Business Terms: Accumulated Benefit Obligation (ABO)
Accumulated Benefit Obligation (ABO)
similar to the projected benefit obligation (PBO), but it is measured using current compensation levels rather than assumptions about future compensation.
Dictionary of Finance and Investment Terms: Accumulated Benefit Obligation (ABO)
Accumulated Benefit Obligation (ABO)
estimated liabilty of a pension plan assuming immediate termination. Differs from projected benefit obligation (PBO), which makes a similar calculation assuming plan is ongoing.
