Underfunded pension plan

(redirected from Under-Funded Pension)

Underfunded pension plan

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

Underfunded Pension Plan

A pension plan that has more liabilities than assets. That is, the retirees covered under the pension plan have been promised more than the plan contains. This may happen for a variety of reasons, such as the pension's investments not going as expected, or perhaps retirees are living longer than expected. It can lead to bankruptcy, though some pension plans have government guarantees.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
The purchase price is subject to adjustments for working capital and certain liabilities, including under-funded pension liability and foreign debt.
In an effort to shore up under-funded pension plans, the Lane Transit District board has voted unanimously to adopt a less expensive plan for administrative employees who are hired after Jan.
McClatchy said in a statement that it would use the most of the proceeds from the deal -- $163 million -- to help refresh its under-funded pension plan and another big chunk -- $65 million -- to holders of 2017-maturity bonds.
Carney said last week that the company was imposing its offer because it was a good one: a one-year contract with a 1 percent wage increase, a 1 percent signing bonus and a one-time $1.2 million company contribution to the under-funded pension plan.
BRITISH Airways said today that it had agreed a recovery plan for its under-funded pension schemes in a move which paves the way for its merger with Spanish rival Iberia.
Embattled US parent Reader's Digest Association (RDA) said it was no longer able to support the UK title after a rescue deal for the firm's under-funded pension scheme fell through.
(12) There are two recent (2007/08) precedents for this: the UK government has offered compensation to workers of troubled firms with under-funded pension schemes, and the Parliamentary Ombudsman has recommended that government compensate policy holders of pension provider Equitable Life for losses due to regulatory failures.
With sector focus and industry-leading work in specialist areas such as under-funded pension schemes, the restructuring and recovery division is going from strength to strength, handling a broad range of assignments.
These losses directly affected AFSCME members through under-funded pension plans and the need for increased employer contributions.
Almost every week in the media, there is an article about under-funded pension plans and looming labour shortages.
"They may have more of their fair share of caring responsibilities and financial concerns with a mortgage or an under-funded pension, or they may be caring for older relatives, or children who haven't flown from the nest.