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.
Many employers with declining cash flows eye overfunded pension plans as a lifeline.
In a discussion of policy on reversions of excess assets from overfunded pension plans, the authors again argue that policy changes will cause defined benefit plan decline.
Many businesses have off-balance sheet" assets, such as copyrights, leasehold interest rights, and overfunded pension plans.
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.