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.
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The weighted average of the funding ratios of all Dutch pension funds declined to 101.8%, down 3 percentage points from the first quarter (see Chart 1).
This instrument allows us to comply with the new liquidity and funding ratios at a lower intermediation cost,' UnionBank CFO and Treasurer Jose Emmanuel Hilado said.
This instrument allows us to comply with the new liquidity and funding ratios at a lower intermediation cost,' said Union Bank senior executive vice president, chief financial officer, and treasurer Jose Emmanuel Hilado.
He also said there is a need to reduce the Statutory Liquidity Ratio and substituting this with the liquidity coverage ratios and net stable funding ratios set by Basel.
He said along these lines, requirements that banks mandatorily invest in government bonds (the SLR requirement) should continue to be reduced, substituting instead with the liquidity coverage ratios and net stable funding ratios set by Basel.
Indeed, SS funding ratios as low as zero may be sustainable, in a mathematical sense, if the funding formula includes an amortization payment that adjusts outside of SS (to provide stability) and generates sufficient contributions in SS to help fund the benefits of prior cohorts as well as the current cohort.
Initial funding ratios for a DB pension fund suggested in Siegmann (2011) are between 0.87 and 1.2.
Cardano offers clients specialised advisory and fiduciary management services helping pension funds achieve a steady stable growth in funding ratios with less chance of nasty shocks.
Investment returns of 2.1 percent could not keep up with the return on liabilities over the quarter, causing funding ratios to once again decrease.
The authors assert that pension (and arguably OPEB) funding ratios are similar to general obligation (GO) debt and as such, should be associated with state credit ratings.
Kuwait's central bank has announced that it has issued guidelines on net stable funding ratios.
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