Dutch Pensioenfonds Hoogovens’ current coverage ratio fell from 120.5 per cent in October to 119.1 per cent in November 2024, its funding update has found.

At the beginning of 2024, the current coverage ratio was 121.2 per cent, meaning the current coverage ratio fell below the level it started at this year.

The value of the invested capital increased from €9,828m to €10,537m so far in 2024, which increased the current coverage ratio by 11.1 percentage points during the month.

However, the discount rate had a negative effect of 9.7 percentage points on the development of the current coverage ratio this year. Meanwhile, the granted pension increase had a negative effect of 4.1 percentage points on the current coverage ratio.

Pensioenfonds Hoogovens’ said these were the most important factors that have influenced the coverage ratio so far this year. There were a couple of other factors that have had a smaller influence on the coverage ratio.

In addition to this, the policy coverage ratio, the average of the coverage ratio over the past 12 months, also fell from 125.1 per cent in October to 123.8 per cent in November.

The policy coverage ratio was therefore 18.2 percentage points lower than the coverage ratio for future-proof indexation (TBI). The TBI is the coverage ratio from which allowances not granted in the past may be made up.

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