Dutch pension fund PGB has revealed that both its current funding ratio and policy funding ratio increased in July 2023.

According to its latest update, PGB’s current funding ratio improved by 2.4 percentage points during the month, from 117 per cent at the end of June to 119.4 per cent at the end of July.

The pension fund’s current funding ratio has been improving since the end of April and, at the end of July, was 5.4 percentage points higher than at the beginning of the year.

The coverage ratio is the relationship between the pension fund’s assets and liabilities; if the coverage ratio is 100 per cent there is exactly enough money to pay all it pensions.

Alongside the improvement in the current funding ratio, PGB’s policy funding ratio also increased in July.

The policy funding ratio is the average current funding ratio over the previous 12 months.

In July, the pension fund’s policy funding ratio increased by 0.2 percentage points to 117.3 per cent.

PGB’s policy funding ratio had been steadily declining since February, falling from 118.9 per cent to 117.1 per cent between February and the end of June.

However, this trend was broken in July as the improvements seen in the current funding ratio increased the average of the previous 12 months.

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