minimum pension liability

Definition

The event in which the total benefit obligation of a pension plan is larger than the current but not the projected future value of the pension plan's assets. This gives rise to unfunded liabilities within the pension plan, should the pensioners opt to utilize the assets promised to them in the pension contract.
Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
minimum payment option mortgage minimum price contract