Pension Funding Status And Plan Assets

Pension Funding Status And Plan Assets groups related personal finance terms inside Pension Plan Design and Funding. Personal-finance terms for funded, unfunded, underfunded, overfunded, and advance-funded pension plans.

Use this subsection when the question is about household planning, retirement accounts, payments technology, or tax effects on finance decisions rather than a broad legal or product directory.

In this section

• Advance-Funded Pension Plan
  Pension plan structure that sets aside assets during employees’ working years rather than waiting to pay benefits only when they come due.
• Funded Pension Plan
  Pension plan backed by assets that are set aside in advance to support future retirement benefit payments.
• Overfunded Pension Plan
  Pension plan whose assets exceed the present value of projected benefit liabilities under current assumptions.
• Underfunded Pension Plan
  Pension plan whose assets are insufficient to cover the value of promised retirement benefits under current assumptions.
• Unfunded Pension Plan
  Pension plan that pays benefits without maintaining a dedicated prefunded asset pool large enough to cover future obligations in advance.