Underfunded pension plan

(redirected from Underfunded Pension Plans)

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 ?
Eltife raised concerns about shoring up underfunded pension plans and putting more resources into transportation and higher education.
Significantly underfunded pension plans require additional cash contributions and the amortization of pension losses, tempting managers to opportunistically increase the ERR.
In exchange, Detroit would get millions to bolster its two underfunded pension plans, one for police and firefighters, the other for general city workers.
Consequently, even severely underfunded pension plans do not report a deficit, and the fact that the statement of net fiduciary position of a pension trust reports a significant fiduciary net position is, in itself, no indication that the plan is adequately funded.
Act 44 of 2009, the Municipal Pension Plan Funding Standard and Recovery Act, requires underfunded pension plans to proffer a distress recovery plan.
Forces within and beyond LTD's control have left the district with underfunded pension plans.
5bn to its underfunded pension plans for each of the next two years, the automaker is likely to start issuing dividends by 2012.
The request comes after a group of major employers asked Ottawa to double the amount of time allowed to top up underfunded pension plans to 10 years and to use a method of calculation that would reduce the size of reported deficits.
PBGC's single-employer program faces financial challenges from a history of weak plan funding rules that left it susceptible to claims from sponsors of large, severely underfunded pension plans.
According to the statement, the airlines have both lobbied Congress for pension relief and frozen their underfunded pension plans, with liability for the plans falling on the Pension Benefit Guaranty Corporation and ultimately the American taxpayer, should the venture fail.
Treasury provide guidance on new rules enacted as part of the Pension Protection Act of 2006 (PPA) that restrict benefits in underfunded pension plans.