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Unfunded vested benefit liabilities refer to the obligations a pension plan has to pay benefits that have been earned by employees but are not currently backed by sufficient assets. These liabilities arise when the promised retirement benefits exceed the plan's available funding, creating a shortfall. Essentially, it represents a financial risk for the organization, as it indicates potential future cash outflows that are not yet secured. This situation can occur due to various factors, including investment performance and changes in actuarial assumptions.

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5d ago

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