The present value of defined benefit obligations is the present value, without deducting any plan assets, of expected future payments required to settle the obligation resulting from employee service in the current and prior periods.
Short for Defined Benefit Obligation. Cash value of all benefits for service periods that have already been rendered taking into account future salary increases, to the extent the benefits are contingent on future salary.
Defined Benefit Obligation: DBO is defined as the present value of all vested and non-vested benefits calculated on the basis of estimated salary levels at retirement. The only actuarial method that may be used to calculate the DBO is the projected unit credit method. DBO is the same as PBO (projected benefit obligation).