Pension payable definition
/Pension payable is a general ledger account in which is recorded the liability that an employer owes to its employee pension plan. When there is a comparatively large balance in this account, it can signal a lack of employer liquidity.
When an employer makes a payment against a pension payable, this reduces the balance in the pension payable account. However, it is possible for the balance in this account to increase when there are changes in the actuarial assumptions associated with a pension plan, or when pension plan benefits are increased.