Funding ratio

(redirected from Funding Ratios)

Funding ratio

The ratio of a pension plan's assets to its liabilities.

Funding Ratio

A ratio of a pension or annuity's assets to its liabilities. A funding ratio above 1 indicates that the pension or annuity is able to cover all payments it is obligated to make. A ratio below 1 indicates that it is either unable to make payments or is in danger of not being able to do so.
References in periodicals archive ?
Kuwait's central bank has announced that it has issued guidelines on net stable funding ratios.
Several large state plans, including those in Illinois and Connecticut, have funding ratios below 60 percent, Lockhart said.
After the turn of the century, pension funds in the Netherlands, the United States, and the United Kingdom suffered a fall in funding ratios.
Multiple funding ratios should be examined over several years to determine trends, and other factors should be considered when assessing fiscal soundness including:
Funding ratios compare assets with liabilities, and a 100 percent ratio means the plan's assets cover its liabilities.
We're also looking at legislation to change the funding ratios to make it easier on the counties.
By contrast, some states already are concerned about the sustainability of their pension systems, with present funding ratios of more than 80%.
However, the funding status of public pension plans varies widely, and many plans are significantly underfunded, with funding ratios of less than 75 percent.
Percentage of companies with enough assets to Average adjusted Plan year cover accumulated obligations funding ratios 1988 95% 67% 1989 94 149 1990 85 137 1991 80 29 1992 74 123 1993 58 110
The Dutch central bank, the sector supervisor, has asked pension funds to take action if their funding ratios were lower than the legally required minimum of 105 percent by the end of 2011, the report said, citing unnamed sources.
Volatility of funding ratios continues to be a theme with many daily changes in excess of 1 percentage point, which is well below the extremes evidenced during the height of the credit crunch, but enough to cause significant distress to finance directors seeking to control emerging quarterly results.
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