How do you tax-effect complex pension situations with partially funded plans?

a plan with DBO (Defined Benefit Obligation) $300m, plan assets $200m, of which $50m in tax-privileged vehicles (CTA − Contractual Trust Arrangement). Net underfunding = DBO − total plan assets = 300 − 200 = $100m → after-tax at t = 30% → $70m. The CTA share: the $50m of CTA plan assets are assets dedicated to the plan and reduce the underfunding like any other plan assets; the CTA mainly changes the insolvency protection / tax privilege of the asset returns, not whether the assets cover the underfunding. Practical simplification: net underfunding (DBO − total plan assets) × (1 − t) as the standard assumption. In detailed DD: separate tax treatments for CTA vs. direct pension liability. Local specifics: unfunded direct pension promises (support funds, pension funds) − tax treatment varies.