verb
- to fund or finance in advance; to set aside money beforehand for a future obligation or expense
Usage: often used in financial and pension contexts
Examples
- The company decided to prefund its pension obligations to reduce future liabilities.
- The government prefunded the infrastructure project by allocating budget in the previous fiscal year.
- Many organizations prefund their employee benefits accounts to ensure stability.
- The trust was prefunded with a large endowment to support scholarships for decades.
- They prefunded the renovation costs before construction began.