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Overfunded Pension Plan
(redirected from Overfunded Pension Plans)

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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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Section 420 Rules Tax Code Section 420, added by the Revenue Reconciliation Act of 1990, allowed sponsors of certain overfunded pension plans to transfer a portion of those excess assets to "401(h)" subaccounts.
The operating performance results contrast with the results reported in studies examining the termination of overfunded pension plans during the 1980s.
The Effect of Voluntary Terminations of Overfunded Pension Plans on Shareholder Wealth," by Jack VanDerhei.
 
 
 
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