[Verse 1] Companies promise workers golden years ahead Monthly payments when their working days are dead But promises cost money, obligations grow Like shadows lengthening as retirement looms below The actuary calculates what future holds Present value of those promises untold [Chorus] PBO - Projected Benefit Obligation What we owe when workers reach their destination Plan assets sitting in the trust today Funded status shows if we can pay Balance sheet reveals the gap between What's promised and what's in the machine [Verse 2] Defined benefit means the company takes the risk If markets crash or workers live past what they wished Unlike defined contribution where workers own their fate Here the employer holds the keys to pension's gate Service cost accumulates with every year they serve Interest cost compounds on what they will deserve [Chorus] PBO - Projected Benefit Obligation What we owe when workers reach their destination Plan assets sitting in the trust today Funded status shows if we can pay Balance sheet reveals the gap between What's promised and what's in the machine [Bridge] When plan assets exceed the PBO Overfunded status starts to show When obligations tower above the gold Underfunded story must be told Pension liability hits the books While actuarial gains deserve second looks [Verse 3] Discount rates and mortality tables dance Assumptions shifting pension's circumstance Expected returns on invested treasure Against reality we'll always measure The funded status tells the clearest tale If pension promises will prevail [Final Chorus] PBO - Projected Benefit Obligation What we owe when workers reach their destination Plan assets sitting in the trust today Funded status shows if we can pay Balance sheet reveals the gap between What's promised and what's in the machine The pension story carved in black and white
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