Settlement (of employee benefit obligations) is a transaction that eliminates all further legal or constructive obligation for part or all of the benefits provided under a defined benefit plan, for example, when a lump-sum cash payment is made to, or on behalf of, plan participants in exchange for their rights to receive specified post-employment benefits.
Settlement (of employee benefit obligations) is specifically discussed in IAS 19 Employee Benefits.
Source: Glossary of Terms of IFRSs as at 31 December 2008.
