Sentences with phrase «pension underfunding»
Pension underfunding refers to a situation where a pension plan does not have enough money to cover the financial obligations and promises it has made to retirees or employees for their future retirement income. This occurs when the money set aside for pensions is not sufficient enough to provide the expected benefits. Full definition
The vast majority of states underwent pension reforms in the past decade to address the financial challenges of pension underfunding and none abandoned their defined benefit pensions.
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But when one takes a step back and looks beyond the temporary pension underfunding issue (which has already been largely rectified by market moves), things don't seem nearly as dire.
A colleague of mine who works at a pension fund did a study last year in which he concluded that, because of the extreme degree of public pension underfunding, a 10 % decline in the stock market for a sustained period — i.e. more than 3 or 4 months — would cause every single public pension fund to blow up.
States can take a balanced approach to managing pension underfunding that fits their particular circumstances.
Christian Weller: The states» fiscal crisis necessitates that they address pension underfunding.
Ontario, for instance, has a Pension Benefits Guarantee Fund that's intended to cover pension underfunding up to certain limits if a company goes bust.
However, an additional decade and a half of pension underfunding, faulty actuarial assumptions, and extra benefits for workers have driven the system's unfunded liabilities sky - high.
Aside from the pension underfunding discussed above, the largest adjustment was $ 16.5 billion in excess cash.
In reality, when it came to what the CTU most wanted in its 2012 strike, it chose pay increases over fixing the pension underfunding, which then stood at $ 8 billion.
Poor investment performance and pension underfunding are risks, certainly, but there is a very low probability that either will make your pension evaporate.
• Pension underfunding was cut in half, decreasing to USD 224 billion (USD 218 billion deficit in 2002) from the record USD 452 billion