The Difference Between the Accumulated Benefit Obligation (ABO) and the Projected

question 45

Multiple Choice

The difference between the accumulated benefit obligation (ABO) and the projected benefit obligation (PBO) is:

• A)the PBO considers non-vested obligations and the ABO does not.
• B)the PBO takes into account the time value of money and the ABO does not.
• C)the PBO takes into account future pay increases and the ABO does not.
• D)the PBO takes into account mortality rates of employees and the ABO does not.

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