Funding level

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. For example, when assets are 100 and liabilities are 90, the funding level is 90/100 = 90%.

(Not to be confused with the deficit, which in this example is 100 - 90 = 10.)

See also

• Deficit
• Funding ratio
• Scheme Specific Funding
• Statement of funding principles
• Statutory funding objective