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InvestHub.com's
Finance Dictionary and Glossary of Investment Terms

unfunded pension plan  

Definition 1.

A pension plan funded out of the employer's current income whenever funds are required by retiring employees or beneficiaries, rather than out of money put aside on a regular basis regardless of current need.
 

Definition 2.

Provides for the employer to pay out amounts to retirees or beneficiaries as and when they are needed. There is no money put aside on a regular basis. Instead, it is taken out of current income.
 
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