Pension Benefits – Overfunded (SF.BS.PensionBenefits_Overfunded)

Pension Benefits – Overfunded (SF.BS.PensionBenefits_Overfunded) refers to the overfunded pension benefits. When a company uses the Defined Benefit Method, regularly funded pension contribution may generate gains such that the fair market value of plan assets exceeds the accumulated benefit obligation leading to excess benefits which remain on the balance sheet as Pension Benefits – Overfunded (SF.BS.PensionBenefits_Overfunded). The accumulated benefit obligation is the present value of pension benefits earned as of the balance sheet date based on current salaries.

Pension Benefits – Overfunded (SF.BS.PensionBenefits_Overfunded) includes:

  • Prepaid pension costs
  • Pension assets