Deficit

1. Pensions - defined benefit schemes.

The excess of liabilities over assets in a funded Defined benefit pension scheme; also known as under-funding.

Example

Pension liabilities = 100.

Pension assets = 90.

The deficit would be:

100 - 90

= 10.

(Not to be confused with the percentage funding level which in this example would be 90 / 100 = 90%.)

Relevant accounting standards include Section 28 of FRS 102.

2. Public finances.

A government fiscal deficit, usually for a particular period, most often a year.

3.

Any financial shortfall, whether cumulative or for a single period.

See also

• Amortisation
• Fiscal deficit
• FRS 102
• Funding level
• Multicurrency cross-border pooling
• Multicurrency one-country pooling
• Surplus