Overfunding


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Overfunding

1. Describing any investment, annuity or other financial instrument containing more assets than liabilities. That is, contributions and the investment of those contributions amount to more than what the instrument owes to holders. This is considered a sign of financial health for the instrument.

2. In the United Kingdom, the practice of lending more government securities than the government is expected to need to fund its activities. The excess is used to fight inflation.
References in periodicals archive ?
She added that a meeting with members of the chancery staff did not answer questions she and others had about why employees never received an annual report on the pension plan, and why and how the overfunding had occurred.
Headcount, in fact, is where overfunding is most readily apparent.
The funded status of your plan especially at the transition date and the extent of overfunding or underfunding.
tax consequences; rather, to the extent overfunding occurs, it is most likely the result of downsizing and the excess funds will be used to reduce future contributions.
The calculations for our rates effective July 1, 1996, indicate an unfunded liability for miscellaneous employees of $368,312 and overfunding of public safety employees of $3.
The NPO includes the employer's transition liability (asset), if any, for past under- or overfunding of contribution requirements between the effective date of Statement no.
Peterson explained that with people living longer, overfunding a variable life insurance policy can give added flexibility to someone's overall retirement strategy.
The longer they can hang on to the overfunding, the happier they are.
As I looked for common threads within innovative development projects, I quickly discovered something many readers probably knew already: I am not the first to contend DoD overfunding is a problem.
Peltier receives a 63% commission on the $200 annualized target amount of the $400 premium policy and a 2% commission on the $200 overfunding of the policy.
The absolute value of the coefficient estimate on the underfunding variable exceeds the coefficient estimate on the overfunding variable in all eight years.