unallocated funding
A method of
funding a pension plan in which the pension funds as a whole are
held and managed by a funding agency, often an insurance company,
and are not allocated to specific plan participants. When a
participant retires, the funding agency either purchases an annuity
for the retiree or pays periodic benefits
directly from the
fund. However, the funding agency makes no contractual promises that
it will pay any specific benefit amounts. Contrast with allocated
funding.
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