Overfunded pension plan

(redirected from Overfunded Pension Plans)

Overfunded pension plan

A pension plan that has a positive surplus (i.e., assets exceed liabilities).

Overfunded Pension Plan

A pension that has more assets than liabilities. That is, pensioners' contributions and the investment of those contributions amount to more than what the pension owes to retirees. This is considered a sign of financial health for the pension.
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1987, The Effect of Voluntary Termination of Overfunded Pension Plans on Shareholder Wealth, Journal of Risk and Insurance, 54: 131-156.
The Effect of Voluntary Terminations of Overfunded Pension Plans on Shareholder Wealth," by Jack VanDerhei.
As long as the pension fund assets are expected to grow at least as rapidly as the pension obligation, overfunded pension plans will continue to generate negative pension expense for a long time.
SWAIM: Some transfer provisions allow employers to fund health-care benefits for significantly overfunded pension plans.
Lens claims Stone & Webster has committed fraud by failing to adequately disclose its engineering business has operated at a loss, and the source of its stated profits is the surplus of previously overfunded pension plans.
Many employers with declining cash flows eye overfunded pension plans as a lifeline.
Combined with the strong stock and bond market, this reduced or eliminated deductible contributions for many overfunded pension plans for several years.
The large commercial aircraft backlog, high levels of defense spending, and overfunded pension plans ($4.
The operating performance results contrast with the results reported in studies examining the termination of overfunded pension plans during the 1980s.
This new law may have immediate cash flow benefits for employers with overfunded pension plans, since companies would use excess pension assets instead of current operating funds to pay for current retiree health costs.
This twelve percent increase in the probability suggests that the estimated asymmetry between unfunded pension liabilities and excess pension assets has economic significance to firms with significantly underfunded and overfunded pension plans.
Mittelstaedt finds that terminations of overfunded pension plans are associated with financial weakening and capital constraints.