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


Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
Investor Glossary Index >>> # 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 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
Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
©2004-2013 Investor Glossary - All rights reserved - Terms of Use