Liquidity constraints Vs. Funding status status

adehbone

How does pension plan funding status affect liquidity constraints?

ohai

VinceMTL Wrote:
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> Underfunded status might require you to contribute
> in excess of planned contributions...
> = Higher Liquidity Needs


you are thinking in terms of liquidity needs of the sponsor??

NakedPuts2011

i think it depends. liquidity of DB = benefit payment - pension contributions

if the underfunded DB plan has no retired lives, then, its liquidity needs are low, despite of its underfunded status. Did i miss anything?

strikethree

underfunded status of pension plan needs more liquidity I think