Pension plan that pays benefits without maintaining a dedicated prefunded asset pool large enough to cover future obligations in advance.
An unfunded pension plan is a pension plan that pays benefits without maintaining a dedicated prefunded asset pool large enough to cover future obligations in advance.
It matters because benefit security depends more heavily on ongoing sponsor cash flow, tax revenue, or future contributors than on assets already set aside for retirees.
Pay-As-You-Go Pension
Funded Pension Plan
Pension Plan
State Pension