Deficit Reduction Contribution

Definition of "Deficit reduction contribution"

Liliana Whittington real estate agent
Liliana Whittington, Real Estate Agent Whittington Real Estate

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.


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