Overfunded pension plan

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Overfunded pension plan

A pension plan that has a positive surplus (i.e., assets exceed liabilities).
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
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Congress won't allow the Postal Service access to its own surplus of overfunded pensions, totally paid for by the sale of stamps and postal services.
Strong financial market performance could easily translate into overfunded pensions, which is desirable, since it means that DB pensions are prepared for a rainy day, such as the recent crisis.