Funded pension plan

(redirected from Funded Pension Plans)

Funded pension plan

A pension plan in which all liabilities, including payments to be made to pensioners in the immediate future, are completely funded.

Funded Pension Plan

A pension that has sufficient liquid assets to pay all of its liabilities, including (and especially) all future payments to beneficiaries.
References in periodicals archive ?
Most countries nowadays benchmark their pension systems against a standard three-pillar system (as also proposed by the World Bank for developing and emerging economies): a basic state-provided pension pillar with the goal of poverty reduction, a second (often funded) pillar comprising employer co-sponsored pensions and a third pension pillar comprising voluntary privately funded pension plans promoting a stronger relation between earnings and pensions (as the rich can contribute more to their private accounts).
Companies with fully funded pension plans resent having to essentially overpay premiums in order to cover the mistakes made by bankrupt companies, whose legacy pension costs they are forced to cover to some extent.
According to the Pew study, in 2000 just more than half the states had fully funded pension plans.
In the past, the formulae that determined the range of annual contributions an employer could or must contribute to a pension plan were subjective, highly volatile and ultimately failed to provide for safely funded pension plans.
Ottawa--Four in five Canadians are uncertain about the future of their private and employer funded pension plans and believe that their plans are in crisis because of underfunding, according to a Conference Board of Canada survey.
The percentage of fully funded pension plans with over 1,000 members lowered from 84 percent in 1998 to 37 percent in 2002.
Even if there is no long-term impact on saving rates, the creation of funded pension plans changes the composition of financial assets and increases the supply of long-term contractual savings making it more likely that savings will be channelled into projects with high returns (Vittas, 1999).
The author fears that if the system is not reformed, taxpayers ultimately may have to provide PBGC with the money needed to cover the liabilities of poorly funded pension plans.
Are funded pension plans necessary for retirement system reform?
Philip Davis looks at private pension funding in 12 OECD countries and argues that fully funded pension plans are preferable to pay-as-you-go plans and that state-supported pension plans "crowd out" privately funded pension plans.
funded plans, in line with the company s previously-disclosed long-term strategy to de-risk its funded pension plans.
Ironically, I find that poorly funded pension plans with higher actuarially assumed portfolio returns have a higher probability of investing in ETIs.