The thing I don't understand is how a pension that someone else own's can even be valued as such.  For example:

Person A: Saves $2M over a lifetime for retirement (e.g., business owner, no other retirement).  Pays out 4% per annum or $80K per year.  When he dies, he still has the $2M pot of money (or his heirs do) assuming it is in equities and not an insurance policy.

Person B:  Gets a defined pension benefit of $80K.  Assume this is 4% of the pension funds, which would be $2M.  When the person dies the owner of the pension fund (the $2M) stays in the pot.  If the province, then in the provincial pot, etc.

Therefore, Person A really does have an asset of $2M, but Person B doesn't have any asset when they die.

There must be an accounting reason that full value can be assumed to be an asset for a defined pension plan, but I don't understand why.  Would really love to have some enlighten me on this.  Is it just an accounting thing as I see no practical value after death.

Thanks!