Overfunded pension plan

Similar financial terms

Underfunded pension plan
A pension plan that has a negative surplus (i.e., liabilities larger than assets).

Pension sponsors
Organizations that have established a pension plan.

Pension plan
A fund that is established for the payment of retirement benefits.

Pension Benefit Guaranty Corporation (PBGC)
A federal agency that insures the vested benefits of pension plan participants (established in 1974 by the ERISA legislation).

Contingent pension liability
Under ERISA, the firm is liable to the plan participants for up to 39% of the net worth of the firm.

Advance funded pension plan
Pension plan in which funds are set aside in advance of the date of retirement.

Withdrawal plan
The ability to establish automatic periodic mutual fund redemptions and have proceeds mailed directly to the investor.

Tax-deferred retirement plans
Employer-sponsored and other plans that allow contributions and earnings to be made and accumulate tax-free until they are paid out as benefits.

Short-term financial plan
A financial plan that covers the coming fiscal year.

Security market plane
A plane that shows the equilibrium between expected return and the beta coefficient of more than one factor.

Planning horizon
The length of time a model projects into the future.

Planned financing program
Program of short-term and long-term financing as outlined in the corporate financial plan.

Planned capital expenditure program
Capital expenditure program as outlined in the corporate financial plan.

Planned amortization class CMO
(a) One class of CMO that carries the most stable cash flows and the lowest prepayement risk of any class of CMO. Because of that stable cash flow, it is considered the least risky CMO. (b) A CMO bond class that stipulates cash-flow contributions to a sinking fund. With the PAC, principal payments are directed to the sinking fund on a priority basis in accordance with a predetermined payment schedule, with prior claim to the cash flows before other CMO classes. Similarly, cash flows received ...

Plan sponsors
The entities that establish pension plans, including private business entities acting for their employees; state and local entities operating on behalf of their employees; unions acting on behalf of their members; and individuals representing themselves.

Plan for reorganization
A plan for reorganizing a firm during the Chapter 11 bankruptcy process.

Non-insured plans
Defined benefit pension plans that are not guaranteed by life insurance products.

Money purchase plan
A defined benefit contribution plan in which the participant contributes some part and the firm contributes at the same or a different rate. Also called and individual account plan.

Materials requirement planning
Computer-based systems that plan backward from the production schedule to make purchases in order to manage inventory levels.

Long-term financial plan
Financial plan covering two or more years of future operations.

Keogh plan
A pension account with deferred taxes. Only available to self-employed persons.

Baker Plan
A plan by U.S. Treasury Secretary James Baker under which 15 principal middle-income debtor countries (the Baker 15) would undertake growth-oriented structural reforms, to be supported by increased financing from the World Bank and continued lending from commercial banks.

Corporate financial planning
Financial planning conducted by a firm that encompasses preparation of both long- and short-term financial plans.

Planned Amortization Class
A security which is structured to have a reasonable life expectancy provided the prepayment speeds stay within the defined ranges. The scheduled interest and principal payments tend to be more stable for these tranches relative to the other parts of the deal.