The provision for pension liabilities is the value of the accrued pensions to be paid now and in the future. The funding ratio indicates the degree to which the provision for pension liabilities is covered by the assets. |
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If the provision for pension liabilities rises, for example as the result of an increase in the salary group or pensions, the funding ratio decreases. Assets are calculated on the basis of market value, the provision for pension liabilities is calculated using the market rate of interest. |
