Overfunded pension plan

(redirected from Overfunded Pension)

Overfunded pension plan

A pension plan that has a positive surplus (i.e., assets exceed liabilities).

Overfunded Pension Plan

A pension that has more assets than liabilities. That is, pensioners' contributions and the investment of those contributions amount to more than what the pension owes to retirees. This is considered a sign of financial health for the pension.
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Furthermore, Nebraska Medicine has an overfunded pension plan that it plans to terminate in fiscal 2019.
If the firm has net operating losses it is carrying forward and has excess pension assets (overfunded), then it is more likely to terminate than to convert, but if the firm is currently paying federal tax and has excess pension assets, termination of an overfunded pension plan will likely involve paying substantial taxes.
An overfunded pension plan should have allowed the Postal Service to scale back contributions, freeing funds for improved service or rate reductions.
Answer--An employer with an overfunded pension plan can amend the plan to add postretirement health insurance as an additional incidental benefit.
Once the calculations are complete for all plans, the employer must aggregate the net balances of all overfunded pension and other benefit plans into a single asset on the balance sheet.
* The Effect of Voluntary Terminations of Overfunded Pension Plans on Shareholder Wealth," by Jack VanDerhei.
Corporate restructuring involves activities such as divestiture of underperforming businesses that do not "fit," spinoffs directly to shareholders, stock repurchases, debt swaps, acquisitions paid with "excess cash," and liquidation of overfunded pension funds...In 1985 the Standard & Poor's 500 appreciated 26% in price.
The overfunded pension plan, built in large part by employee contributions, can easily afford to pay more, say the retirees.
An Empirical Analysis of the Factors Underlying the Decision to Remove Excess Assets from Overfunded Pension Plans.
As part of the corporate restructuring, Union Carbide effected a reversion of pension plan funds from its overfunded pension plan and used it to buy back company stock.
In IBM's case, it did have an overfunded pension plan.