Underfunded pension plan

(redirected from Underfunded Pensions)

Underfunded pension plan

A pension plan that has a negative surplus (i.e., liabilities exceed assets).

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.
References in periodicals archive ?
They report an interesting interaction between the form of city management and tax/expenditure limitations: during stressful economic periods a mayor-council form of government is associated with less underfunded pensions.
He describes how pension problem occurred, how big it is, and why it has not been fixed, demonstrating that pension officials and politicians have offered increasingly generous benefits, low-balled contributions needed to cover benefits, and underfunded pensions, and how taxes or investments won't help solve the problem.
Constant talk of underfunded pensions and municipal bankruptcies does little to quell anxiety in the topsy-turvy market, but a new report from research and consulting firm Mercer could lessen fears.
Senator Hatch, in his own report on underfunded pensions, released in 2012, found that underfunding of state and local pensions could surpass $4 trillion.
We look at what they are and find out why this new kind of plan could be the wave of the future in places facing hugely underfunded pensions.
The district has blamed the underfunded pensions largely on stock market plunges in 2000 and 2008, which drained LTD's pension plans - and many public and private pension plans - of investment earnings.
UAL used its court protection to cut its work force by 25 percent and dump its underfunded pensions on government pension insurers.
Presenting this nearly half a trillion dollars in underfunded pensions and OPEBs on the balance sheets for the S&P 500 companies would reduce their shareholders' equity by about 6.
With an ailing Social Security program and fears that corporations such as United Airlines have underfunded pensions, opening an IRA account is a necessity for most investors.
The proposal would give USD30bn in relief to various industries, and also special help to industries like airlines, steel and automobiles by suspending "catch-up" payments to their underfunded pensions.
COMPANIES with the largest layoffs, most underfunded pensions and biggest tax breaks were rewarded with bigger paychecks in 2002, according to a new report issued by the Washington, D.