Deficit and Defined contribution pension scheme: Difference between pages

From ACT Wiki
(Difference between pages)
Jump to navigationJump to search
imported>Administrator
(CSV import)
 
imported>Doug Williamson
(Layout.)
 
Line 1: Line 1:
1. ''Pensions accounting.''
(DC).  
The excess of liabilities over assets in a funded Defined benefit pension scheme; also known as under-funding.


For example, if the liabilities were 100 and the assets were 90, the deficit would be 100 - 90 = 10.
A pension scheme where benefits are based on how much money has been paid into the scheme and the investment returns earned, a significant part of the sum achieved often being invested in an annuity at market rates at - or soon after - retirement.
(Not to be confused with the percentage ''funding level'' which in this example would be 90/100 = 90%.)
 
Such schemes are by definition funded.
 
Also known as ''money purchase'' schemes.  


2. More generally, any financial shortfall.


== See also ==
== See also ==
* [[Amortisation]]
* [[401(k) plan]]
* [[Fiscal deficit]]
* [[Annual allowance]]
* [[FRS 17]]
* [[Annuity]]
* [[Funding level]]
* [[Defined benefit pension scheme]]
* [[Multicurrency cross-border pooling]]
* [[Occupational pension scheme]]
* [[Multicurrency one-country pooling]]
* [[Stakeholder pension scheme]]
* [[Surplus]]


[[Category:Manage_risks]]

Revision as of 13:12, 24 October 2022

(DC).

A pension scheme where benefits are based on how much money has been paid into the scheme and the investment returns earned, a significant part of the sum achieved often being invested in an annuity at market rates at - or soon after - retirement.

Such schemes are by definition funded.

Also known as money purchase schemes.


See also

Retrieved from ‘https://wiki.treasurers.org/w/index.php?title=Deficit&oldid=14340’