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UNFUNDED PENSION PLANS

Statistics Directorate    
French Equivalent: Plans de retraite non capitalisés

Definition:
Plans that are financed directly from contributions from the plan sponsor or provider and/or the plan participant.

Unfunded pension plans are said to be paid on a current disbursement method (also known as the pay as you go, PAYG, method). Unfunded plans may still have associated reserves to cover immediate expenses or smooth contributions within given time periods. Most OECD countries do not allow unfunded private pension plans.

Context:
Identical term, "PAYG plan".

Source Publication:
OECD Working Party on Private Pensions, 2005, “'Private Pensions: OECD Classification and Glossary, 2005 edition”, OECD, Paris.

Cross References:
Funded pension plan

Statistical Theme: Financial statistics

Glossary Output Segments:
OECD Private Pensions

Created on Monday, January 20, 2003

Last updated on Wednesday, August 17, 2005