Pension Scheme

Dear sir,
what does it mean when a question says “benefits paid out”?
we reduce this amount in both pension plan assets and pension plan liabilities

Why is that? Is it because it is a return from the pension scheme, and therefore it’s an asset, but we paid it out to employee or in a separate account, so therefore assets reduce. This amount is a liability to the company so when its paid out to employee liability decreases as well. is my understanding correct? I think im wrong because pension benefits are paid only when employee terminates his employment…so why is the paid out amount reduced from both assets and liabilities?

Thanks