prefunding

In recent years, in a process called "prefunding," banks have sought to calm investors by stockpiling cash to pay maturing debt to show they don't need to raise new capital.

Markets Remain Unkind to BofA Serena Ng 2011

In the early 1980s, acting on the advice of the Greenspan Commission, President Reagan and the congress began "prefunding" Social Security--having the Social Security system run a surplus in the years from 1983 to 2017 or so in order for it to run a deficit later on.

Social Security: Privatization without Grand Larceny 2007

DTM: No such “basic problem” exists because it is not true that “you have to start prefunding benefits.”

Matthew Yglesias » Alice Rivlin: “Now Is An Excellent Time To Fix Social Security And Medicare” 2009

If #1 is true and all promised benefits will be paid, then not only are Friedman and Greenspan correct in saying prefunding them is not a cost, but it's also true that prefunding them now to avoid having to fund them after the fiscal crunch hits has got to be beneficial.

No Entitlements Crisis?, Arnold Kling | EconLog | Library of Economics and Liberty 2009

That said, the Diamond-Orszag proposal not only partakes of benefit cuts, but of further extension of the prefunding/trust fund model of actuarial solvency.

Matthew Yglesias » The Cult of Peter Orszag 2009

To repeat, the basic problem in an era of increasing retiree-to-worker ratios is that you have to start prefunding benefits.

Matthew Yglesias » Alice Rivlin: “Now Is An Excellent Time To Fix Social Security And Medicare” 2009

Even if the agency is again allowed to postpone more than $11 billion in mandated health-care prefunding payments, the Postal Service will still likely hit its $15 billion debt ceiling this year, and no longer be able to borrow from the Treasury, Mr. Corbett said.

Postal Service Loss Widens to $3.3 Billion Eric Morath 2012

The latest cutback plans were first reported by The Washington Post, which said a notice to employees informing them of its proposals stated: "Financial crisis calls for significant actions, we will be insolvent next month due to significant declines in mail volume and retiree health benefit prefunding costs imposed by Congress."

Postal Service considers cutting 120,000 jobs 2011

The $3.3 billion loss in the October-to December quarter—which included a $3.1 billion charge for mandated health-care prefunding payments—was 10 times as large as the loss in the same quarter a year earlier.

Postal Service Loss Widens to $3.3 Billion Eric Morath 2012

The latest cutback plans were first reported by The Washington Post, which said a notice to employees informing them of its proposals stated: "Financial crisis calls for significant actions, we will be insolvent next month due to significant declines in mail volume and retiree health benefit prefunding costs imposed by Congress."

Postal Service considers cutting 120,000 jobs 2011