defined benefit liability, page-2

Defined benefits are paid out of earnings. They can gradually reduce it to nothing in Australia by only offering defined contributions super to new employees while gradually paying down the existing liability. I'm not sure what the situation is in Canada and Europe. I would guess they have defined contributions options as well. The liability only has to be paid as employees become entitled to it, so the cash flow strain is not usually too great in any one year. -It's not as if it will ever have to be paid all at once.