funding ratio

Definition

The ratio of an annuity or pension's assets to it liabilities. Funding ratios above a one will indicate the pension or annuity can cover all obligated payments. Ratios below a one will reflect it is unable to make payments or may be in jeopardy of not being about to make payments at a later time.
Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
funding fee funds