An Unfunded Liability is a liability, such as a pension plan benefit, that does not have assets set aside to fund the future payment.

Unfunded liability is a future payment obligation, like a pension, without money set aside to cover it.

What does unfunded liability mean? Unfunded liability is a future financial obligation without enough assets saved to cover it, often seen in pensions.

What is an unfunded pension plan? An unfunded pension plan is a retirement plan where the employer has not set aside funds to pay for future benefits, relying instead on future cash flows.

Is pension liability a liability? Yes, pension liability is a liability, meaning the obligation to pay future pension benefits to employees.

-

Unfunded liability points out future financial obligations, encouraging proactive asset management.

Unfunded liability points to future financial commitments that require proactive management.