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Deficits in pensions accounting

The excess of liabilities over assets in a funded Defined benefit pension scheme; also known as under-funding.


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%.)

Relevant accounting standards include Section 28 of FRS 102.

Deficits generally

More generally, a 'deficit' means any financial shortfall.

See also