Emeriti is a defined contribution plan, funded through contributions that are equal flat dollar amounts for each eligible employee (derived from a minimum contribution pool equal to 1/2 of 1% of payroll for the eligible group of employees). Ongoing contributions are therefore very predictable, with no unfunded liabilities.

Institutions that want to continue a defined benefit promise from a legacy plan for current retired employees or older employees at the inception of the Emeriti Plan can do so; funding for the defined benefit promises will of course be less predictable, and tied to the rising costs of medical and drug costs and longevity. As those promises are phased out, replaced with defined contribution prefunding, the transition funding and the accompanying accounting liabilities will gradually be reduced.