Funding level: Difference between revisions
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Revision as of 14:45, 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
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.)
