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 ?
S&P credit analyst Sussan Corsons survey results revealed a decline in reported median pension funding ratios from 75 percent to 6 percent as of the fiscal year ended June 30, 2016, the latest available data.
It is calculated as the average of the funding ratios based on daily market information for the past twelve months.
BANKING AND CREDIT NEWS-July 8, 2016-UBS reports US pension funding ratios drop 3% in Q2 2016
M2 EQUITYBITES-July 8, 2016-UBS reports US pension funding ratios drop 3% in Q2 2016
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.
Summary paragraph: Funding ratios tend to be cyclical
Specifically, households with lower levels of consumption and higher funding ratios tend to boost spending during retirement while households with higher levels of consumption and lower funding ratios are more likely to reduce their spending in retirement.
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.
The Dutch regulatory authorities have defined key nominal funding ratios that need to be met to ensure that pension funds are able to finance their nominal (future) pension commitments.
Funding ratios compare assets with liabilities, and a 100 percent ratio means the plan's assets cover its liabilities.
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