Definition of «pension obligations»

Pension obligations refer to the legal and financial commitments that an employer has towards providing pensions or retirement benefits to its employees. These obligations can include defined benefit plans, where the employer promises a certain level of monthly income for life after retirement, or defined contribution plans, where the employer contributes a fixed amount each year into the employee's retirement account. The term "pension obligation" is often used interchangeably with pension liabilities, which refers to the estimated future cash flows required to meet these commitments. Pension obligations can be a significant financial burden for employers and must be carefully managed to ensure that funds are available when needed to pay retirement benefits.

Phrases with «pension obligations»

Sentences with «pension obligations»

  • That it has the highest pension obligations in the country is no matter. (edsource.org)
  • Not fully funding pension obligations now costs taxpayers more in future years to pay for the pension benefits of employees, he said. (articles.chicagotribune.com)
  • The bulk of this increase went to paying down debt on existing pension obligations, not to the direct costs of providing new benefits for current teachers. (educationnext.org)
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