Unfunded Liability Law and Legal Definition

Unfunded liability means “the estimated excess of the present value of all benefits payable from the Fund to employees and Members, and former employees and Members, subject to this subchapter, and to their survivors, over the sum of--

(A) the present value of deductions to be withheld from the future basic pay of employees and Members currently subject to this subchapter [5 USCS §§ 8331 et seq.] and of future agency contributions to be made in their behalf; plus

(B) the present value of Government payments to the Fund under section 8348(f) of this title [5 USCS § 8348(f)]; plus

(C) the Fund balance as of the date the unfunded liability is determined.” (5 USCS § 8331)