A stringent capital requirement which required that pension fund liabilities are 100% funded. If the pension fund falls below this level the deficit must be remedied within five years. In the case of falling below 90% this must be remedied within one year. The implementation started to effect the Gilt market as long ago as 1997 by forcing pension funds to hold a large proportion of their assets in Gilts. In 2001 – after it was reviewed in the Myners Report – the Treasury announced that it would be abolished. As of yet it has only been modified since the legislation required to abolish it has not yet been passed by Government.
Minimum Funding Requirement.. A minimum funding standard that applies to final salary pension schemes. Regulations detail the assumptions to be used in the calculations. If a scheme fails to meet the MFR, action must be taken to restore the funding level within a specified timescale.
Minimum Funding Requirement" & _ " Provides some protection for members of occupational pension schemes. MFR requires companies to maintain a minimum level of funding to ensure that members can be paid if the scheme or company winds up, although employees are not necessarily paid their full entitlement if the company collapses. Unlikely to apply to those in a Defined Contribution scheme.
Minimum funding requirement. This is part of the Pensions Act 1995. It affects how much money a final salary pension scheme must have in its fund so that it can pay future pensions.
Minimum Funding Requirement. UK government requirement that final salary pension schemes may not fall below 90% of the current value of the future liabilities. Has caused widespread closure of final salary schemes and increased bond holdings not equities.
Mutual Fund Representative.