Investor Glossary-underfunded pension planInvestor Glossary-underfunded pension planInvestor Glossary-underfunded pension planInvestor Glossary-underfunded pension planInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Underfunded Pension Plan

The HTML to link to this page
 

An underfunded pension plan has liabilities exceeding assets. A plan that is less than 80% funded for a period of two or more years is categorized as an underfunded pension plan. An underfunded pension plan lacks sufficient resources to pay benefits for all its retirees and workers. Although an underfunded pension plan can happen in any industry, the auto, airline and retail industries are most frequently singled out for having substantial underfunded pension plan issues. These industries employ millions of Americans whose retirement security is threatened by underfunded pension plan concerns. An underfunded pension plan can occur if stock market returns are poor or if interest rates are low. Low interest rates make long-term obligations appear larger. Solutions proposed for the underfunded pension plan problem include raising corporate premiums, requesting a taxpayer bailout or reducing pension benefits.



Rate this underfunded pension plan definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: implied volatility, EBITDA, APR, liquidity ratio, labor relations, VIX, current ratio, 1031 exchange, balance sheet, ex-dividend, FTSE, risk management, Zero Cost Collar, retained earnings, dividends payable, stock market close, phantom income, diluted share, debt service coverage, required rate of return, 1035 exchange, command economy, inflation, 144a, real GDP, annual return, limit order, deferred tax, stock split, 401a, wholly-owned subsidiary, margin rate, class C shares, option premium, in escrow, open position, deferred revenue, Key Rate Duration, minority interest, per diem, ex-dividend date, covered put, reverse mortgage, cancelled check, average price per share, FICO score, quality assurance, LIBOR, irrevocable trust


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2015 Investor Glossary - All rights reserved - Terms of Use