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Funding Ratio

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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.


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The fund said in a letter sent to its members this week that its funding ratio -- a measure of how well a pension scheme can meet its liabilities -- was 85 per cent at the end of November, down from 180 per cent at the end of 2007.
Local plans in the center's study had a funding ratio of 85 percent, compared with 84 percent for state plans.
Byline: Elaine Thompson SHREWSBURY - The latest retirement valuation study shows the town's funding ratio has increased from 71.
 
 
 
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