Funding level: Difference between revisions
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'''Example''' | '''Example''' | ||
Assets = | Assets = £100m | ||
Liabilities = | Liabilities = £90m | ||
The funding level is: | The funding level is: | ||
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(Not to be confused with the ''deficit'', which in this example is 100 - 90 = | (Not to be confused with the ''deficit'', which in this example is 100 - 90 = £10m.) | ||
Revision as of 15:57, 16 March 2015
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.)
