"An 80% funded ratio often has been cited in recent years 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. This issue brief debunks that myth and clarifies how actuaries view funding levels for pension plans and how the funded ratio relates to the general idea of 'soundness' or the 'health' of a pension plan or system."  MORE >>