Deficit: Difference between revisions
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''' | '''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%.) | (Not to be confused with the percentage ''funding level'' which in this example would be 90 / 100 = 90%.) | ||
Revision as of 13:07, 15 March 2015
1. Pensions accounting.
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%.)
2. More generally, any financial shortfall.
