Final answer:
The claim that companies calculate the vested benefit obligation based on vested benefits at current salary levels is false; the VBO accounts for compensation up to the time of calculation, which may include past salary levels.
Step-by-step explanation:
The statement that companies compute the vested benefit obligation using only vested benefits, at current salary levels, is false. When calculating a company's vested benefit obligation (VBO), it is indeed based on the vested benefits, which are the benefits that the employee is entitled to receive upon leaving the company, regardless of whether they fully meet all the vesting criteria of the pension plan at the current time. However, the idea of 'current salary levels' is not accurate. Instead, the VBO considers the compensation levels up to the point of calculation. This means that while vested benefits are used, they may involve past compensation levels rather than current ones, especially if the benefits have been earned in prior years.