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Funded pension plan |
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Funded pension plan A pension plan in which all liabilities, including payments to be made to pensioners in the immediate future, are completely funded. How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
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Firms which had greater tax burdens, higher profitability, and less risky debt (measured by bond ratings) funded pension plans at higher levels than less profitable, more risky firms. If a company folds, a fully funded pension plan could survive unscathed, But most plans are underfunded by the time a company folds. The final cost of a funded pension plan consists of total benefits paid plus operating expense outlay minus investment income. |
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