Overfunding


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Overfunding

1. Describing any investment, annuity or other financial instrument containing more assets than liabilities. That is, contributions and the investment of those contributions amount to more than what the instrument owes to holders. This is considered a sign of financial health for the instrument.

2. In the United Kingdom, the practice of lending more government securities than the government is expected to need to fund its activities. The excess is used to fight inflation.
References in periodicals archive ?
In addition, financial flexibility at group level is supported by the lack of meaningful debt maturities over the next four years, initial cash overfunding, and access to enlarged GBP150 million revolving credit facilities.
In reply, Emefiele likened the CBN's supposed overfunding of the government to the way a commercial bank might allow a customer to overdraw on an account.
We expose ourselves immediately to overfunding if we open the web to restricted giving" immediately after a disaster, Kurmann said.
Through the entire period, overfunding has remained in the $40 million to $60 million range.
The Ministry of Women's Affairs had found several "violations" in shelters run by aid agencies, including overfunding and corruption, as well as lack of discipline and poor quality of life, the acting minister for women's affairs, Husn Bano Ghazanfar, told reporters in Kabul.
More important, I contend this overfunding is limiting our ability to innovate, which has negative consequences for America's war fighting capabilities.
There's been huge overfunding," Scully told the forum, and he described Medicare as a "big, dumb check writer.
If these awards aren't coordinated effectively, institutions run the risk of overfunding some students while underfunding others.
Otherwise, overfunding (not from taxpayer contributions but from excess earnings) could be wasted.
These negative numbers are disturbing, especially since there was a $5 billion pension surplus in 2001 and $235 billion overfunding in 2000.