However, pension plan members may also be at risk if there is an unfunded pension
liability and the employer company fails.
New Jersey's unfunded pension
obligation stands at nearly $100 billion and was the source of 11 credit downgrades under the Christie administration.
They inherited the state's existing level of total bonded indebtedness, which was $3.8 billion on June 30, 2011, and the existing unfunded pension
liability at PERS, which was $12.3 billion.
debt across the 50 states totals a staggering $1.6 trillion, even by the plans' own (often overly rosy) accounting.
liability included in financial leverage is not expected to be a primary driver of rating changes.
"The imposition of a new unfunded pension
liability will swing a wrecking ball through the already difficult budget plans for 2019 and the following years.
The Office for National Statistics: 'Central and local government have unfunded pension
liabilities of PS5.3 trillion, 279% of GDP.'.
liabilities and absence of any contribution by pensioners remain the biggest reasons behind this phenomenon, with annual budgetary provisions picking the pension bill.
Sears also owes a minimum $596 million in pension contributions for 2016 and 2017 combined, and has a total unfunded pension
and post-retirement obligation of$2.1 billion, according to Moody's.
Bank Leumi said that calculation of the capitalisation interest on liabilities for first generation employees at the bank entitled to an unfunded pension
would be conducted according to the average yield during the past eight quarters on government bonds, plus the spread of the yields on AA-rated corporate bonds in the US.
The transaction value is subject, at closing, to reduction for certain underfunded and unfunded pension
obligations and further adjustment for cash, indebtedness of the business, and variation, if any, of working capital versus a targeted amount.