Vested benefit obligation definition
/What is a Vested Benefit Obligation?
A vested benefit obligation is the actuarial present value of benefits that have been earned by employees . They will receive this benefit even if they stop participating in their employer’s pension plan. This obligation is typically associated with multi-year cliff vesting requirements for employees, so a firm whose employees have a relatively high level of seniority will have a larger vested benefit obligation than a firm with newer employees.
