"Using a 'market value' approach, rather than an actuarial value, involves a stricter funding requirement (100% instead of 90%) and a shorter period of time to get to full funding (2 years instead of 4-5 years). Additionally, if a company experiences a steep loss in the value of its assets or if it achieves an unusually high investment return, it has a shorter period of time over which to 'smooth' the value of its assets. Unfortunately, this significantly increases the volatility of the cost of the pension plan."  MORE >>