Deficit: Difference between revisions
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imported>Doug Williamson (Standardise appearance of page.) |
imported>Doug Williamson (Standardise appearance of page) |
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'''Example''' | '''Example''' | ||
Pension liabilities = 100 | Pension liabilities = 100. | ||
Pension assets = 90 | Pension assets = 90. | ||
The deficit would be 100 - 90 = 10. | 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 15:36, 21 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.