The policy funding ratio of the Dutch pension fund Hoogovens fell further over April to 130 per cent.

Publishing its monthly funding update, the pension fund revealed that its policy funding ratio, which is the average of the funding ratio over a 12-month period, fell slightly from 130.2 per cent.

Therefore, the policy funding ratio is currently 14 per cent lower than the funding ratio for future sustainable indexation (TBI). The TBI is the funding ratio from which non-granted past supplements may be recovered.

However, in more positive news, the pension fund revealed that its funding ratio increased to 127.2 per cent in April. This is a 1.9 percentage point increase on its funding ratio at the end of March, up from 125.3 per cent. It has also increased significantly since the start of 2024, when the funding ratio stood at 121.2 per cent.

The pension fund said that, up to the end of April, the actuarial interest rate has had a positive effect of 3.7 percentage points on the development of the funding ratio.

Furthermore, the value of invested assets has increased from €9,828m to €9,930m so far in 2024 with the investment return increasing the current funding ratio by 2 percentage points, up to the end of April.

“These are the main factors affecting the funding ratio so far this year. There are a few other factors that have (a smaller) influence on the funding ratio,” the fund stated.

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