Dutch pension fund PMT’s current funding ratio rose from 107.5 per cent to 109.5 per cent in the first quarter of 2023, its latest quarterly update has revealed.

The increase was due to a rise in interest rates and a positive return on the pension fund’s return portfolio.

Its policy funding ratio, which is the average current funding ratio of the previous 12 months, fell from 108.7 per cent to 108.5 per cent.

PMT’s assets grew by approximately €1.1bn to €78.2bn, with its overall investment return in Q2 being 1 per cent.

Meanwhile, the pension fund’s liabilities fell from €71.8bn to €71.5bn.

It achieved a positive return of 2.2 per cent on its risk-bearing return portfolio, but reported a negative return of -0.7 per cent on its matching portfolio.

Real estate was the asset class that saw the lowest return, at -2.2 per cent.

However, the pension fund’s equity investments returned 3.9 per cent and its high-yield securities investments returned 1.6 per cent.

“We look back on an exciting period in which supporters and opponents of the Future Pensions Act have had ample opportunity to make themselves heard and to ask critical questions,” said PMT chairs, Terry Troost and Eunice Bronswijk.

“A lot of time has been spent answering them. Our participants and employers also had questions, in particular about the consequences for them after the switch to the new system in 2026.

“Will the premium remain the same, will my pension benefit remain the same? We haven't been able to reassure everyone, after all we don't have a crystal ball.

“What we do promise is that we will do everything we can to keep the contributions and pension benefits as stable as possible.”

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