Issue brief questions oft-cited pension funding ratio.

• Position: Brief article

In recent years, news and research reports have cited an 80 percent funded ratio as a basis for whether a pension plan is financially or actuarially sound. "Left unchallenged, this misinformation can gain undue credibility with the observer, who may accept and in turn rely on it as fact, thereby establishing a mythic standard," according to the brief. The issue brief challenges the 80 percent funded ratio "myth" and clarifies how actuaries view funding levels for pension plans and how the funded ratio relates to the general idea of soundness or health of a pension plan or system. According to the Pension Practice...