Current Disbursement

Definition of "Current disbursement"

Payment of premiums and benefits as they come due. In pension plans, known as the "pay as you go basis." The plan depends on new employees coming into the work force so that their contributions can help pay for the benefits of the retiring employees. If the company is not experiencing growth and is in fact part of a matured or even a dying industry, there may not be enough on hand to pay benefits of retiring employees.

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