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.
The smaller coefficients on the overfunded pension variable support the asymmetry hypothesis.(13, 14)
This twelve percent increase in the probability suggests that the estimated asymmetry between unfunded pension liabilities and excess pension assets has economic significance to firms with significantly underfunded and overfunded pension plans.
This comparison further suggests that the estimated asymmetry has economic significance for firms with significantly underfunded and overfunded pension plans.
Peskin (1997) provides an analysis of pension fund management taking into account the likely asymmetry in underfunded and overfunded pension plans.
In two of these industries, the difference in coefficients on the underfunded and overfunded pension variable is statistically significant.
A Financing Explanation for Overfunded Pension Plan Terminations.