To Determine the Total Pension Liability for a Defined Benefit

To determine the total pension liability for a defined benefit pension plan, an actuary projects the future benefits that will be paid to or for the benefit of retirees; discounts the projected future benefits to determine their actuarial present value; and attributes the actuarial present value to future and past periods of employee service. The total pension liability is the amount of the actuarial present value attributed to past periods of employee service.