Underfunded pension plan(redirected from Under-Funded Pension Plans)
Underfunded pension plan
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