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Underfunded Pension Plan
(redirected from Underfunded Pensions)

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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.


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The problem of underfunded pensions will not be eliminated overnight.
The proposal would give USD30bn in relief to various industries, and also special help to industries like airlines, steel and automobiles by suspending "catch-up" payments to their underfunded pensions.
COMPANIES with the largest layoffs, most underfunded pensions and biggest tax breaks were rewarded with bigger paychecks in 2002, according to a new report issued by the Washington, D.
 
 
 
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