Fig. 7

Relative Valuation Difference, Excess Funding and Shortfall, 2017. Figure shows relative aggregated valuation difference and excess funding and shortfall for funds within same band width of funding ratios (x-axis) and as a share of total pension liabilities (left panel) and active insurants’ savings (right panel). The aggregation is the total sum in CHF of all funds neighboring observations within band width including closet 20% of observations and weighted by tricube kernel weights. The left panel shows shares as percent of total reported pension liabilities, the right panel as percent of active insurants’ savings. Economic funding ratios, and corresponding retiree pension liabilites evaluated at market interest rates are approximated using the conversion factors retrieved from PPCmetrics (2020). The sample includes only private and public funds without state guarantees, and only includes funds with a funding ratio between 81.5 and 152.3% (0.5th–95th percentile range of the overall sample)