Difference between Funded Status and Plan Surplus?

[sachin_patel]

Is there any difference?
Funded Status = PV of assets - PV of liabilities.
Plan Surplus = Assets - Liabilitys.
Are both the same?
Thanks

 

[ink]

i don’t see a difference between funded status or plan surplus, since they both indicate towards the same thing (i.e., is the value of the assets suficient to cover the pv of estimated liabilities). Just note that when you talk about assets, you specify that they are evaluated at market value, and when you discuss liabilities, you always talk in term of their present value.

 

[S2000magician]

Yes: they’re the same.

 

[zulu007]

Same - unless underfunded status (cannot denote it as ‘surplus’)

 

[myriam2222]

No not really the same.
I agree with zulu.
It is the same calculation except you only call it surplus when it is positive. Otherwise you call it deficit. It is like your bank account: your bank balance is the same figure as your bank overdraft. But you don’t call it overdraft if it is not negative.