There almost always is a postretirement liability for postretirement benefit plans since very few are funded.

Question

Quizplus · Accepted Answer

Postretirement benefit plans, such as healthcare and pensions, are often unfunded and rely on future cash flows to cover the costs of benefits. This creates a liability for the company that must be recognized on their financial statements, even if they have not yet incurred the actual costs of the benefits. Therefore, there is almost always a postretirement liability for these plans.

There Almost Always Is a Postretirement Liability for Postretirement Benefit