Funding level: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson (Updated entry. Source ACT Glossary of terms) |
imported>Doug Williamson (Standardise appearance of page) |
||
| Line 6: | Line 6: | ||
'''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 14:43, 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
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.)
