overfunding

Limited overfunding, say up to 20 percent, is acceptable in order to build a cushion.

Thanks to such overfunding, the contract gives the health-care institutions more than $100 million in savings in their pension contributions.

In particular, it is misleading to imply that overfunding of such plans is a matter of "excess money" that employers "mistakenly put in."

The Manufacturers Hanover Corporation said it would increase its equity position by recognizing a net gain of $30 million in the third quarter on the overfunding of its pension plan.

Although the abandonment of overfunding has meant that this problem has (although maybe only temporarily) been resolved there still remains an issue as to the relationship between central government and the local authorities.

In last year's negotiations for a new contract with the players association, the N.H.L. owners had agreed to let the players benefit from the overfunding, and the union went to work on details.

Labor Official Comments "Overfunding gives labor bargaining room to seek more," said Henry Schechter, deputy director of the department of economic research at the American Federation of Labor and Congress of Industrial Organizations.

Almost $16 billion in cash was withdrawn by company managers from more than 1,400 of these plans between 1980 and April 1987 in a manner known formally as reversions -actions that have aroused the ire of unions and other organizations that want the overfunding used for the benefit of the members of the plans.