unfunded pension plan


A pension plan funded out of the employer's current income whenever funds are required by retiring employees or beneficiaries, rather than out of money put aside on a regular basis regardless of current need.

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The unfunded pension plan was really interesting to me and I was really disappointed to have it for myself and everyone else.

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My mother's retirement is now in jeopardy after the company she works for revealed that it had not made pension contributions for years and now had an unfunded pension plan.

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UNFUNDED PENSION PLANAn employer managed RETIREMENT PLAN that uses the employer's current income to fund pension payments as they become necessary. This is in contrast to an advance funded pension plan where an employer sets aside funds systematically and in advance to cover any pension plan expenses such as payment to retirees and their beneficiaries

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unfunded liability UNICAP Rules