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Pension Shortfall
(redirected from Pension Shortfalls)

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Pension Shortfall
A situation in which there are insufficient funds in a defined benefit plan to cover the plan's obligations. A pension shortfall may occur when the investments into which the employer placed the funds do not perform as well as hoped, or perhaps when a disproportionate number of retirees live longer than expected. The company providing the pension is liable for the pension shortfall, meaning that it must find a way to make payments, even if it reduces the company's income.


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The shift from silver surfer to silver entrepreneur comes amid concerns over pension shortfalls and fears over financial security.
The pension relief title of the act allows single-employer plans to elect to amortize over a longer period pension shortfalls caused by losses in asset value they experienced in 2008.
Overwhelmingly, companies are tackling their pension shortfalls by changing the structure of their pension schemes and/or the way they are funded.
 
 
 
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