Unfunded


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Unfunded

Describing any liability or other expense that does not have savings or investments set aside to pay it. That is, the party responsible for paying an unfunded liability pays for it out of current income or by borrowing. The risk of an unfunded liability is that a payee may not receive that which he/she is entitled to if the payer goes through a difficult financial period. It also increases the payer's current liabilities.
References in periodicals archive ?
But he has also proposed issuing what are called "pension obligation bonds" to pay down part of the unfunded liability, transferring surplus state assets to the pension funds and earmarking a portion of the revenue the state would receive from his proposed graduated income tax to pay down pension debt.
There has been some focus on the need for better regulations to protect member pensions and some provinces are currently reviewing regulations to better allocate risks of unfunded liabilities between members and the companies (Baldwin & FitzGerald, 2010).
Briefing the Select Committee on Appropriations, Salga officials said the reason for passing unfunded budgets are complex and has a number of contributing factors.
Badminton England chief executive Adrian Christy said: "This is fantastic news for those sports that were left unfunded following the Tokyo 2020 investment decisions."
A state has payment obligations from three main sources: interest on its outstanding bonds, unfunded liabilities for pension benefits, and unfunded liabilities for health-care payments to state retirees (before Medicare at age 65).
"The other day this body voted to have a constitutional amendment that we could not have unfunded mandates for counties," Thompson said, referring the House's recent approval of a resolution to amend the Texas Constitution to prevent the Legislature from issuing unfunded mandates to counties and municipalities.
Bank Leumi is believed to be the only bank with an unfunded pension for its workers.
The trends in these indicators show deterioration in overall funding health for all three states and sharp increases in unfunded liabilities for Pennsylvania and New Jersey.
Collins and Rettenmaier (2010, 451) recalculated the liabilities of 153 state and local pension plans and found their unfunded pension liabilities to be $2.5 trillion rather than $493 billion as reported under previous assumptions; average funded ratios decreased from 73.4% to 56.3%.
"Now we have exposed their PS28billion of unfunded promises.
Unfunded spending has to cease, so beware of promises related to spending beyond current commitments.
"Today, in further signs of panic, they are announcing billions of pounds of unfunded and unbelievable promises."