Unfunded pension plan

(redirected from Unfunded Pension)

Unfunded pension plan

Provides for the employer to pay out amounts to retirees or beneficiaries as and when they are needed. There is no money put aside on a regular basis. Instead, it is taken out of current income.

Unfunded Pension Plan

A pension plan where a former employer pays pensioners out of current income. That is, the employer does not place money aside or invest funds on a regular basis to finance the pension. Obviously, an unfunded pension carries higher risk for both the pensioner and the employer; if the company goes through a difficult period, the pensioner may not have a pension for all his/her retirement while the employer has higher current liabilities.
References in periodicals archive ?
Therefore, the State Stores Fund is the only fund to separately report its share of the commonwealth's unfunded pension obligation and changes to the unfunded obligation as expense or income on its fiscal year 2014-15 financial statements.
The pension changes transform a projected unfunded pension deficit of over $2 billion dollars to a projected unfunded pension deficit of zero dollars.
2 billion in municipal bonds of the real risk involved by failing to disclose the impact of the unfunded pension liability on the state's ability to manage its other obligations.
More than $1 trillion in unfunded pension promises made to current and retired government employees are straining state budgets, prompting policymakers to find alternative ways to design retirement plans.
19 trillion, including outstanding bonds, unfunded pension commitments and budget gaps, according to a new report.
According to the parties, the transfer will simplify the administration of the defined benefit pension plan for Aeroplan and its eligible employees and will not result in Aeroplan assuming a material unfunded pension obligation on the basis of the most recent actuarial valuation report.
Since 1986, accounting standards have required state and local governments to report their unfunded pension liabilities.
The California Public Employee Retirement System and the California State Teachers' Retirement System are now on the hook for $49 billion in unfunded pension liabilities.
The first being unfunded pension deficits and the second being widespread share buybacks and high dividend payments.
The first of these is unfunded pension deficits and the second widespread share buybacks and high dividend payments.
Japan's pension program has unfunded pension liabilities of 430 trillion yen, which will balloon in the future unless the government takes drastic steps, such as higher taxes, it said.
Jon Fullerton (see "Mounting Debt," Forum, Winter 2004) notes that the unfunded pension liability of the Los Angeles Unified School District alone is $4.