Entity that holds the assets of a retirement plan, which is often the insurance company.
Insurance Encyclopedia
Funding deficiency
See: accumulated funding deficiency .
Funding instrument
See: funding vehicle .
Funding level
Dollar amount of funds needed to finance a medical care program.
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UK: The comparison of a pension scheme’s assets and liabilities.
Funding level (Health Insurance)
The amount of money needed to buy a medical care program. Either the premium cost for an insured program or an amount charged for anticipated claim loss and other fees.
Funding method
System used by employers to pay for health insurance plans such as prospective premium payment, retrospective premium payment, shared risk, or self-funding.
Funding plan
The plan to ensure that money will be available to pay out pension benefits as they fall due. It involves setting contributions at a certain level, such as the standard contribution rate.
Funding ratio
The funding level expressed as a percentage.
Funding standard account
Bookkeeping account that is kept to determine if a defined benefit pension plan (DBPP) meets minimum funding standards set by law. Some of the entries to the account are derived actuarially. Failure to satisfy minimum funding standards can cause penalty taxes and enforcement actions. Also called minimum funding standard account and minimum funding standards .
Funding vehicle
Legal document (insurance contract) that states the policies and management of pension funds by a funding agency such as an insurance company. Also called funding instrument .