The minimum pension liability that must be shown on the balance sheet of the plan sponsor is the excess of the projected benefit obligation over the plan assets at fair value.

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This is true. According to accounting standards, the minimum pension liability that must be recorded on the balance sheet of the plan sponsor is the difference between the projected benefit obligation (PBO) and the fair value of plan assets. This is referred to as the funded status of the plan. If the fair value of plan assets is greater than the PBO, the plan is said to be overfunded, and no minimum pension liability needs to be recorded.

The Minimum Pension Liability That Must Be Shown on the Balance