The pension liability that must be shown on the balance sheet of the plan sponsor is the

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The excess of the projected benefit obligation over the fair value of plan assets is known as the pension liability that must be shown on the balance sheet of the plan sponsor. This represents the amount of funds that the plan sponsor must contribute to the plan to meet the pension obligations of the plan participants. The other options, including the accumulated benefit obligation and projected benefit obligation, are important measures of the pension obligations, but they do not represent the liability that must be shown on the balance sheet of the plan sponsor.

The Pension Liability That Must Be Shown on the Balance