0 If an organization is underfunded, it does not receive a large enough income:
1 receiving less money than is needed to continue or to work effectively:
In addition, much-needed funds were siphoned away from underfunded schools.
A pension fund is deemed underfunded if the present value of all future liabilities is higher than the value of its assets.
And when domestic federal programmes were enacted, they were typically administered locally, underfunded, stigmatised, and vulnerable to cutbacks.
The simultaneous collapse of the stock market, and interest rates pushed many plans into underfunded status.
Under the special rule, a plan is considered underfunded if the value of its assets is less than 90 % of its current liability.
However, the system was underfunded and weakly implemented and workers viewed it as inherently biased towards employers.
Further, the pension is underfunded and consequently the firm will exit inefficiently.
In this paper we ask how the risk associated with underfunded defined benefit pensions should be allocated across workers, firms and the government.
