Deficit Reduction Contribution
Definition of "Deficit reduction contribution"
Contribution whose purpose is to increase funding of underfunded pension plans. It is part of the calculation that is made to arrive at the plan's minimum funding requirement. Usually a pension plan requires such a contribution when the assets of the plan become less than 80 to 90% of the current liabilities of the plan.
Popular Insurance Terms
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Evaluation of the demographic characteristics of the entire group (such as age, sex, morbidity, mortality), as opposed to the evaluation of individuals in that group. ...
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