Actuaries Debunk Myth that 80% Pension Funded Ratio Alone Constitutes 'Actuarially Sound'

Actuaries Debunk Myth that 80% Pension Funded Ratio Alone Constitutes 'Actuarially Sound' -- WASHINGTON, Aug. 1, 2012 /PRNewswire-USNewswire/ --
The American Academy of Actuaries cautioned today that a commonly used measure for considering a pension plan healthy—its funded ratio—fails to provide a sufficient measure on its own of a plan's financial health.
"Any realistic assessment of a pension plan should include several measures, not just one," said Senior Pension Fellow Don Fuerst.
"Somehow 80% has become a perceived standard but that is a myth we need to replace with facts."