Unfunded pension plan

(redirected from Unfunded Pensions)

Unfunded pension plan

Provides for the employer to pay out amounts to retirees or beneficiaries as and when they are needed. There is no money put aside on a regular basis. Instead, it is taken out of current income.

Unfunded Pension Plan

A pension plan where a former employer pays pensioners out of current income. That is, the employer does not place money aside or invest funds on a regular basis to finance the pension. Obviously, an unfunded pension carries higher risk for both the pensioner and the employer; if the company goes through a difficult period, the pensioner may not have a pension for all his/her retirement while the employer has higher current liabilities.
References in periodicals archive ?
The debt in this state from unfunded pensions is uncontrollable.
The long-term liability burden is moderate relative to the resource base, with adjusted unfunded pensions and overall debt about 14% of personal income.
Bank Leumi (TASE: LUMI) has been given a concession by Israel's central bank in calculating liabilities for employees entitled to unfunded pensions.
It will include support to establish a retirement cost fund to manage huge unfunded pensions and other retirement liabilities of workers.
Not surprisingly, unfunded pensions at the state and local level have become a critical public policy issue, so are worthy of closer scrutiny than they have thus far been afforded.
Excluded from this PS25,000 are debts related to unfunded pensions, student loans and PFI (private finance initiative widely adopted in building of hospitals and schools).
Fitch's 'BB' rating on the commonwealth's GO bonds reflects demonstrated weakness in the economy, very high liabilities including outstanding debt and unfunded pensions, challenged though improving financial operations, and limited financial flexibility.
This is despite the Government's largely unfunded pensions liabilities more than doubling to over pounds 500 billion in a decade.
Eurostat, the EU's Statistical Office, decided on October 21 that payments to governments by public corporations in the context of the transfer to the State of their unfunded pensions obligations should be set down as receipts in these Member States' public finances.
A balanced budget has occurred only because they are using the Social Security surplus payments from the Baby Boomers as if it were general tax revenue instead of unfunded pensions. What the President and his Republican Congressional accomplices have done takes no financial acumen.
In this paper I will try to be clear about what is intrinsic to funded and unfunded schemes and what is not; my aim is to consider the advantages and disadvantages of reducing reliance on unfunded pensions and moving to a (more) fully funded system.
The town's long-term liability burden is moderate with Fitch-adjusted unfunded pensions plus overall debt at about 14% of personal income.