What is the total future liability of a pension plan described as?

The total future liability of a pension plan is best described as the most comprehensive measure of pension plan liability. This encompasses all the expected future obligations that a pension plan has to its participants, including current and future retirees, based on actuarial assumptions about life expectancy, retirement age, salary increases, and other factors.

This measure is essential for stakeholders, including plan sponsors and regulators, as it reflects the present value of all expected future benefit payments. It offers a holistic view of the plan's commitments, highlighting the financial responsibilities that the plan faces over time. Understanding this total liability is critical for ensuring that the plan is adequately funded and can meet its long-term obligations to its participants.

The other options do not capture the full scope of what total future liability entails. For instance, while estimated future contributions required may reflect part of the ongoing funding strategy, it does not encompass the entire future liability. The amount of cash on hand only represents the current liquidity of the plan, which is not indicative of future obligations. Immediate cash obligations focus on what needs to be paid out in the short term and do not address the long-term, comprehensive nature of the total future liability.