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Minimum funding requirement |
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Minimum funding requirementA rule introduced in the wake of the Maxwell pensions scandal which was intended to ensure that company pensions funds always had enough assets to pay out their liabilities (i.e. pensions to retired members of the scheme).The legislation uses the yield from long term gilts as the yardstick by which a pensions fund's liabilities are measured. To stay within the rules, funds have felt obliged to buy these long-term bonds, with the result that their price has gone sky high.One alternative being considered is to change the whole way liabilities are valued and, in effect, to allow the funds to invest in more exciting securities than gilts, but to couple this with an insurance fund that bails out those funds that are unable to meet their liabilities. This insurance fund would be called the Central Discontinuance Fund (CDF).Similar MatchesUnit labor requirementUnit labor requirementThe amount of labor used per unit of output in an industry; the ratio of labor to output. In a Heckscher-Ohlin Model this varies along an isoquant as different techniques are chosen in response to different factor prices. But in a Ricardian model, these are the constant building blocks for defining comparative advantage and determining behavior. Performance requirementPerformance requirementA requirement that an importer or exporter achieve some level of performance, in terms of exporting, domestic content, etc., in order to obtain an import or export license. Initial margin requirementInitial margin requirementWhen buying securities on margin, the proportion of the total market value of the securities that the investor must pay for in cash. The Security Exchange Act of 1934 gives the Board of Governors of the Federal Reserve the responsibility to set initial margin requirements, but individual brokerage firms are free to set higher requirements. In futures contracts, initial margin requirements are set by the exchange. Local content requirementLocal content requirementSee domestic content requirement. Net capital requirementNet capital requirementSEC requirement that SEC and nonmember SEC SEC-SECs maintain a maximum ratio of indebtedness to liquid SEC of 15 to 1. Further SuggestionsPublic Sector Borrowing RequirementOffset requirement Capital requirements Assets requirements Export requirement Margin requirement (options) Content requirement Sinking fund requirement Domestic content requirement Advance deposit requirement Margin requirement Dividend requirement Listing requirements Requirement Indicator Matrix Public Sector Net Cash Requirement Export performance requirement Materials requirement planning Reserve requirements |
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