The difference between the actuarial accrued liability and the actuarial value of assets accumulated to finance that obligation.

The UAAL is the Actuarial Accrued Liability (AAL) minus any assets that have been irrevocably set aside to fund future benefits. An amortization payment of the UAAL plus the normal cost, plus some technical adjustments, makes up the annual OPEB cost that appears on the income statement.

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