On our this morning Rise and Shine call I heard a new phrase: unfunded liability.
I want to find out it's meaning after which how this term would relate to the common man and woman. We exist in a constant aging environment. We as citizens are growing under a continuous regulated culture. The words/policies are what govern our daily activities. What does some of this stuff mean is what I am seeking to understand in this new phrase. I wanted to know if it was anyway relatable to me or the community I reside in any way.
This is the phrases meaning by definition: The amount, at any given time, by which future payment obligations exceed the present value of funds available to pay them. For example, a pension plan's payment obligations, including all income, death and termination benefits owed, are compared to the plan's present investment experience, and if the total plan obligations exceed the projected plan assets at any point in time, the plan has an unfunded liability. Detroit, MI is a worse case senerio that show in real time/world the results of "Unfunded Liability". The citizens who had their pensions drastically reduced, one of the processes involved was unfunded liability.
This is a sentence that includes the phrase “ Based on revenue projections from the Social Security Administration and the fact that the very populous Baby Boomer Generation has begun to reach retirement age, the economist argued that the U.S. Social Security system would soon become an unfunded liability unless comprehensive reforms were made.” How true is this sentence with the phrase speaking on a federal program we all recognize, makes you want to go hmmm... causes40.freedomequitygroup.com