Over the last decade or more, along with fewer defined pension plans being offered, many defined benefit pension plans are underfunded. That is, these plans simply will not have enough funds to make good on all the promises they made to employees.

Question

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Many defined benefit pension plans are indeed underfunded due to various factors such as increased life expectancy, lower-than-expected investment returns, and companies offering fewer defined benefit plans in favor of defined contribution plans. This underfunding means that the plans may not have sufficient assets to meet all future pension obligations.

Over the Last Decade or More, Along with Fewer Defined