Accumulated Benefit Obligation (ABO)

Estimated liabilty of a pension plan assuming immediate termination. Differs from projected benefit obligation (PBO), which makes a similar calculation assuming plan is ongoing.

Actuarial present value of benefits. Whether vested or nonvested, they are attributed by the pension benefit formula to employee services rendered before a specified date and based on employee service and compensation up to that date using existing salary levels. See also Minimum Pension Liability; Pension Plan; Projected Benefit Obligation.