Pension Shortfall

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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.
References in periodicals archive ?
Consumers Energy today asked the MPSC to allow it to issue more than $1 billion of securitized bonds for Clean Air Act costs, open access implementation costs, additional investments in Consumers Energy's Palisades facilities, and pension shortfalls.
The update of the report includes certain additional considerations, including the funding of regulated utility pension plans as well as potential debt funding of pension shortfalls.
It can also help to administer pension shortfalls and the support and provision for unexpected risks of corporates generally, from the usually insurable to non-insurable.
Pension shortfalls facing Britain's biggest companies fell by nearly a quarter during the past year as firms doubled their contributions to the schemes, new figures have shown.
A lot of factors are contributing - pension shortfalls, increasing life expectancy and lifestyle expectations among the older generation.
But pension shortfalls and fewer younger people would mean that many people would have to work into their mid-70s, said the report.
Also, more than 1,200 employees of Kalamazoo Computer Group face big pension shortfalls after the company went into liquidation two years ago, and there are fears that workers at failed engineering group Mayflower could also be hit.
MORE than 300,000 workers face pension shortfalls unless they double their payments, the Irish Association of Pension Funds (IPAF) revealed yesterday.
But he says the company intends to stick with the transitional rules that call for any pension shortfalls to appear in the notes to the accounts as it accepts the need for transparency.
Yet Congress appears headed in the opposite direction, as the House and Senate struggle to reconcile bills by April 15 that would weaken some pension rules, such as giving companies more time to cover pension shortfalls, and would add special pension exemptions for certain industries and even specific companies.
Major airlines and automakers have disclosed massive pension shortfalls that already have or could decrease pension payouts.