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Investments glossary

Unfunded Pension Plan


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Quotes of the day:

Everyone can get the gold of the Sun. (Tout le monde cueille l\'or du soleil)

— Charles de LEUSSE

An unfunded pension plan is an employer-managed retirement plan that uses the employer’s current income to fund pension payments as they become necessary.1 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 payments to retirees and their beneficiaries.2

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