The vested benefit obligation is the present value of the benefits the employee is entitled to receive even if the employee is no longer employed by the company.

Question

Quizplus · Accepted Answer

The vested benefit obligation (VBO) indeed represents the present value of the pension benefits that an employee has earned up to a certain point, which are payable in the future, and are not contingent upon the employee continuing to work for the employer.

The Vested Benefit Obligation Is the Present Value of the Benefits