pension funding

Pension funding refers to the process of ensuring that a retirement plan has enough money to pay future benefits to retirees. This involves setting aside money during an employee's working years, often through contributions from both the employer and the employee. The funds are typically invested to grow over time. Actuaries assess the amount needed based on factors like life expectancy and expected returns on investments. Proper funding is crucial to ensure retirees receive their promised benefits and to maintain the financial health of the pension plan.