reserve
Definition
can have different meanings, depending on the context of its use. For example, an investment fluctuation reserve in an accumulation fund is an amount which is built up to cover falls in investment returns and asset values. In actuarial terms, the reserve (also called the net liability) of a defined benefit fund is the excess of the present value of liabilities over the present value of future contributions under a plan — it is, therefore, the amount that should be held to cover that part of the liabilities not expected to be covered by future contributions to a fund. In accounting terms, a reserve is similar to a provision to cover future events.
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