Pension Shortfall

Pension Shortfall

A situation in which there are insufficient funds in a defined benefit plan to cover the plan's obligations. A pension shortfall may occur when the investments into which the employer placed the funds do not perform as well as hoped, or perhaps when a disproportionate number of retirees live longer than expected. The company providing the pension is liable for the pension shortfall, meaning that it must find a way to make payments, even if it reduces the company's income.
References in periodicals archive ?
Following Arcadia's announcement of a company voluntary arrangement (CVA) this month, TPR said the proposed attempts to cover the pension shortfall were not sufficient.
That is what they are thinking of doing in the state of Illinois to make up a $130-billion pension shortfall.
Croessman said the reason many area communities have had to increase property taxes is because of a $62,811 pension shortfall. That shortfall is due to the state making conservative changes to actuarial assumptions such as increasing life expectancy and decreasing investment returns.
People heading for a state pension shortfall can potentially top it up by making voluntary contributions
The Commons Work and Pensions Committee have revealed the collapsed firm's pension shortfall could be up to PS990million, almost double the claimed PS590million.
Reports in the UK, suggest consultancy firm EY is on standby should the talks on Carillion's ability to finance the debt and an additional pension shortfall of $800 million stall.
Kate Brown's special task force on reducing Oregon's public pension shortfall released its final report on Wednesday.
Supreme Court is expected to announce in the coming weeks whether it will wade into this ongoing controversy, in which plaintiffs claim that more than 250,000 hospital workers face a pension shortfall of nearly $4 billion.
As Sir Philip came under fresh pressure last night to plug the pension shortfall, which has put the retirement incomes of 22,000 former staff at risk, he was slammed by a veteran BHS employee.
Essar's pension shortfall was more than $500 million.
In New York, the pension shortfall is $14,302 per household, while the OPEB shortfall is $22,857.
The public pension shortfall has resulted from decades of underfunding.