Underfunded pension plan

(redirected from Underfunded Pension)

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 ?
Here's our wild prediction: We'll hear more about this underfunded pension plan.
The report highlights activities that have and have not been successful in producing meaningful reform, and details a number of recommendations for other states seeking to successfully improve their underfunded pension systems.
In exchange, Detroit would get millions to bolster its two underfunded pension plans, one for police and firefighters, the other for general city workers.
One of the UK's most senior judges has delivered an emphatic ruling this week which legal experts say establishes certainty for members of underfunded pension schemes affected by insolvency events.
Also the company said that bmi's underfunded Pension Scheme will be transferred to the UK Pension Protection Fund.
5bn to its underfunded pension plans for each of the next two years, the automaker is likely to start issuing dividends by 2012.
BA agreed a recovery plan in June for its underfunded pension schemes, which it said would avoid closure of the two final salary company pension schemes, which together have nearly 100,000 members.
BA agreed a recovery plan in June for their underfunded pension schemes, which they said would avoid closure of the two final salary schemes, which together have nearly 100,000 members.
BRITISH AIRWAYS said yesterday that it had agreed a recovery plan for its underfunded pension schemes in a move which paves the way for its merger with Spanish rival Iberia.
BRITISH Airways has said it has agreed a recovery plan for its underfunded pension schemes in a move which paves the way for its merger with Spanish rival Iberia.