The current coverage ratio of Dutch pension fund Pensioenfonds Hoogovens rose from 123.1 per cent to 123.6 per cent in August, its latest funding update has revealed.

The update showed that, despite the discount rate pushing the current coverage ratio down by 1.2 percentage points since the start of the year, funding has improved, as the current coverage ratio stood at 121.2 per cent at the start of the year.

This was primarily due to an increase in the value of the invested capital from €9,828m to €10,245m in 2024, which pushed the current coverage ratio up by 7.1 percentage points.

However, the pension increase granted by the fund also had a negative effect of 4.1 percentage points on the current coverage ratio.

The fund also shared an update on its policy coverage ratio, which is the average coverage ratio over twelve months instead of the coverage ratio per month.

In August, the policy coverage ratio fell from 128.5 per cent to 127.7 per cent.

The policy coverage ratio is therefore 17.5 percentage points lower than the coverage ratio for future-proof indexation (TBI).

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