Underfunded pension plan

(redirected from Underfunded 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 ?
Presenting this nearly half a trillion dollars in underfunded pensions and OPEBs on the balance sheets for the S&P 500 companies would reduce their shareholders' equity by about 6.
The problem of underfunded pensions will not be eliminated overnight.
With an ailing Social Security program and fears that corporations such as United Airlines have underfunded pensions, opening an IRA account is a necessity for most investors.
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.
The agency released a list of the 50 companies with the largest underfunded pensions in 1995, totaling $30.
Underfunded pensions aren't unique to the federal government.
The severely underfunded pensions, a large capital improvement plan (CIP), above-average unemployment, and other weak economic indicators remain credit concerns.
Taxpayers are the ones stuck paying for the bloated government salaries, wildly underfunded pensions, and benefit packages that the average worker could only dream of.
A number of airlines have underfunded pensions plans, including Delta Air Lines, Northwest Airlines, US Airways and American Airlines, reported Reuters.
Credit concerns include a recent history of high turnover in management positions, below-average wealth levels, high tax rates, and ongoing budgetary pressures related to a large internal service fund (ISF) deficit and underfunded pensions.