Glossary

A glossary is a dictionary of terms specific to a certain subject. A biology textbook might have a glossary in the back, so you can quickly look up all those technical words.

Underfunded Pension Plan

Updated on 2023-08-29T11:58:31.598984Z

A retirement plan sponsored by a company with more liabilities than assets is an underfunded pension plan. In simple terms, the money required for current and future retirement protection is not readily available. This leaves the future retirees without any guarantee of receiving the pensions they were assured or that the existing retirees would continue to receive their previously established distribution sum.