Underfunded pension plan

(redirected from Under-Funded Pensions)

Underfunded pension plan

A pension plan that has a negative surplus (i.e., liabilities exceed assets).

Underfunded Pension Plan

A pension plan that has more liabilities than assets. That is, the retirees covered under the pension plan have been promised more than the plan contains. This may happen for a variety of reasons, such as the pension's investments not going as expected, or perhaps retirees are living longer than expected. It can lead to bankruptcy, though some pension plans have government guarantees.
References in periodicals archive ?
The ways in which states are tackling under-funded pensions is forcing some painful changes.
already have put oversized and often under-funded pensions in place.
The product launch came a day after financial research company Defaqto said equity release products would play a greater role in retirement planning, due to under-funded pensions, low annuity rates, demographic issues and pensioner debt, alongside high levels of equity in the housing market.
Transport and General Workers' Union general secretary Tony Woodley labelled Shell's profits ``obscene'' and said yesterday that the Government needed to ``grasp the nettle'' in order to raise the money to bolster under-funded pensions.
Transport and General Workers' Union general secretary Tony Woodley labelled Shell's profits "obscene" and said yesterday that the Government needed to "grasp the nettle" in order to raise the money to bolster under-funded pensions.
The companies in the Standard & Poor's 500 stock Index have combined under-funded pensions totaling about $226 billion.
But under-funded pensions are also a serious problem at mid-sized companies, according to a new survey by SET Investments Inc.
Transport and General Workers' Union general secretary Tony Woodley, who last week labelled Shell's profits ``obscene'', said yesterday the government needed to ``grasp the nettle'' to raise money to bolster under-funded pensions.
The truth is that Northwest's biggest problems today are the high cost of fuel and under-funded pensions, not labor.