Pension plan structure that sets aside assets during employees’ working years rather than waiting to pay benefits only when they come due.
An advance-funded pension plan is a pension structure that sets aside assets during employees’ working years rather than waiting to pay benefits only when they come due.
It matters because prefunding changes how pension risk, cash-flow pressure, and long-term investment returns affect retirement security.
Funded Pension Plan
Unfunded Pension Plan
Pension Plan Funding
Pension Fund