Overfunded Pension Plan

This situation represents one of those good problems. Like...the waiter accidentally brings you two deserts. Or you don't have room in your driveway for your new Maserati.

Pension plans collect contributions from employees and the companies they work for. Then they invest the money so they'll have enough cash to pay for the benefits promised in the pension program. The plan has to pay for all the workers' retirements.

An underfunded plan is one that doesn't have enough money. Adding up all the retirement promises and looking at the current bottom line, the pension plan will need a miracle to pay everyone. A looming financial mess.

An overfunded plan represents the opposite. Not only does the pension plan have adequate funds, it has too much. It's like you eating that second desert, or parking your Maserati on the street.