Here is my guess:
Obligation: Actuarial estimate of the amount of assets needed at a given point in time (say, the balance sheet date) required to service all future pension payments.
Liability: Difference between the obligation and the ACTUAL assets the plan has.
Thus, actuaries calculate that the plan needs $10,000,000 to service the pension, plan has $9,000,000 in assets; thus $1M liability (I think lol).
Also, I think the plan assets are always valued at fair value.
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