Module · Stress Index

The Pension Stress Index. A single number for fund-level risk.

A composite institutional-grade metric that blends funding stress, contribution pressure, and cash-flow stress into a comparable 0-100 score.

FSI

FSI = w₁·(1−FR) + w₂·ΔFR_5y + w₃·σ_FR

Captures funded-ratio level, deterioration, and volatility over rolling windows.

CP = (ADC / Payroll) × (1 + ADC_Shortfall)

Measures how much of payroll is consumed by required contributions and unpaid balances.

CFS

CFS = (Benefits − Contributions) / Net Assets

Quantifies dependence on investment returns to fund benefit payments.

PSI

PSI = 0.5·FSI + 0.3·CP + 0.2·CFS

Composite score from 0-100. The Vested headline metric for fund-level stress.

Risk Classification

Range	Class	Interpretation
0-29	LOW	Well-funded, contribution-current, healthy maturity profile.
30-49	MODERATE	Manageable pressure, some assumption or contribution drift.
50-69	ELEVATED	Persistent underfunding or rising required contributions.
70-84	HIGH	Material funding gap, contribution stress, or liquidity exposure.
85-100	SEVERE	Severely underfunded, structurally impaired, or crisis-prone.