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.
Assets = £100m
Liabilities = £90m
The funding level is:
90 / 100
(Not to be confused with the deficit, which in this example is 100 - 90 = £10m.)