Question

The accumulated benefit obligation measures Group of answer choices the level cost that will be sufficient, together with interest to provide the total benefits at retirement. the pension obligation on the basis of the plan formula applied to years of service to date and based on existing salary levels. the pension obligation on the basis of the plan formula applied to years of service to date and based on future salary levels. the shortest possible period for funding to maximize the tax deduction.

Answer 1

the pension obligation on the basis of the plan formula applied to years of service to date and based on existing salary levels

Step-by-step explanation:

Accumulated benefit obligation (ABO) is the nearest amount that represent the liability pension plan of the company for the time period. It is predicted and depend upon the assumption that the pension plan would be ended on instant basis also it would not considered any increment in the future salary

So according to the options given, it would determined the pension obligation that based upon the plan formula and the same would be applied to service years also it would be depend upon the existing level of salary