### Question
What does unfunded liability mean?


### Answer
**Unfunded liability** has the following meaning in *26 U.S.C. § 7448*:

> the amount estimated by the Secretary to be equal to the excess (as of the close of the fiscal year involved) of—


(i) the present value of all benefits payable from the survivors annuity fund (determined on an annual basis in accordance with section 9503 of title 31, United States Code), over


(ii) the sum of—


(I) the present values of future deductions under subsection (c) and future deposits under subsection (d), plus


(II) the balance in such fund as of the close of such fiscal year

#### Citation:
  - *26 U.S.C. § 7448*
  - Heading: **Subtitle F-Procedure and Administration > CHAPTER 76-JUDICIAL PROCEEDINGS > Subchapter C-The Tax Court > PART I-ORGANIZATION AND JURISDICTION**

