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 ?
Pritzker had wanted to extend how long Illinois has to get its underfunded pensions up to 90 percent funded, transfer state assets to the pension funds, issue more debt to make some pension payments, and make a pension buyout plan permanent.
The only fiscally responsible course for New Jersey is a reform agenda that comprehensively addresses underfunded pensions and right-sizing health benefit costs, and allows for no new taxes.
"For such plans, states like Illinois, Kentucky and New Jersey are feeling the effect of insufficient contributions in the form of severely underfunded pensions and rising budgetary demands for pension contributions," said Offerman.
Going back to the matter raised by AARP: Who is responsible for the underfunded pensions? Isn't the situation due to financial mismanagement and sometimes even labor union corruption?
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 2012 report on underfunded pensions, released in 2012, found that underfunding of state and local pensions could surpass $4 trillion.
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.