Pension plan backed by assets that are set aside in advance to support future retirement benefit payments.
A funded pension plan is a pension plan backed by assets that are set aside in advance to support future retirement benefit payments.
It matters because prefunding changes the plan’s financial resilience, the sponsor’s contribution discipline, and the degree to which investment performance affects long-term pension security.
Pension Fund
Pension Plan
Underfunded Pension Plan
Unfunded Pension Plan