Funding level: Difference between revisions
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imported>Doug Williamson m (Spacing 27/8/13) |
imported>Doug Williamson (Updated entry. Source ACT Glossary of terms) |
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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. For example, when assets | The funding level is frequently expressed as a percentage. | ||
For example, | |||
when assets = 100 | |||
liabilities = 90, | |||
the funding level is 90/100 = 90%. | |||
(Not to be confused with the ''deficit'', which in this example is 100 - 90 = 10.) | (Not to be confused with the ''deficit'', which in this example is 100 - 90 = 10.) | ||
Revision as of 12:17, 22 November 2014
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.
For example,
when assets = 100
liabilities = 90,
the funding level is 90/100 = 90%.
(Not to be confused with the deficit, which in this example is 100 - 90 = 10.)
