The Mayor of Brigantine gets a lesson on what an unfunded liability is. Watch Video. Definition: The amount, at any given time, by which future payment obligations exceed the present value of funds available to pay them.
For example, a pension plan’s payment obligations, including all income, death and termination benefits owed, are compared to the plan’s present investment experience, and if the total plan obligations exceed the projected plan assets at any point in time, the plan has an unfunded liability.
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