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• Pension Plan Liabilities

  Posted Date August 8, 2013 Posted Time 10:13 am Published in Server Admin

  I’ve noticed that many cable news channel reports as well as reports in print media have been using the term “unfunded” to describe pension woes of municipalities. There are actually two terms that should be used to describe the pension liabilities: “unfunded” and “underfunded”. An unfunded liability does not mean that the plan is underfunded. There is nothing intrinsically wrong with having an unfunded liability. Unfunded liabilities are a natural component of municipality funding, similar to a mortgage on residential or business property. Underfunded means that the pension plan sponsor of the municipality has not made sufficient contributions to fund... View Article