Funding level: Difference between revisions
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The relationship at a specified date (often the valuation date) between the value of the assets and the value of the liabilities of a defined benefit pension scheme, often expressed as a ratio (the ‘funding ratio’). | The relationship at a specified date (often the valuation date) between the value of the assets and the value of the liabilities of a defined benefit pension scheme, often expressed as a ratio (the ‘funding ratio’). | ||
The funding level is frequently expressed as a percentage | The funding level is frequently expressed as a percentage. | ||
(Not to be confused with the ''deficit'', which in this example is 100 - 90 = | |||
'''Example''' | |||
Assets = £100m | |||
Liabilities = £90m | |||
The funding level is: | |||
90 / 100 | |||
= 90%. | |||
(Not to be confused with the ''deficit'', which in this example is 100 - 90 = £10m.) | |||
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* [[Statement of funding principles]] | * [[Statement of funding principles]] | ||
* [[Statutory funding objective]] | * [[Statutory funding objective]] | ||
[[Category:The_business_context]] | |||
Latest revision as of 15:09, 1 July 2022
Pensions.
The relationship at a specified date (often the valuation date) between the value of the assets and the value of the liabilities of a defined benefit pension scheme, often expressed as a ratio (the ‘funding ratio’).
The funding level is frequently expressed as a percentage.
Example
Assets = £100m
Liabilities = £90m
The funding level is:
90 / 100
= 90%.
(Not to be confused with the deficit, which in this example is 100 - 90 = £10m.)
