The policy funding ratios of several Dutch pension funds decreased in April 2023, despite the general trend of pension funds’ current funding ratios rising during the month.

Pension funds’ policy funding ratios are an average of their current funding ratios from the previous 12 months.

PME reported that its policy funding ratio fell from 112.7 per cent to 112.6 per cent in April, while its current funding ratio rose from 111.5 per cent to 112.3 per cent.

Dutch pension fund PGB saw similar but larger movements during the month, with its policy funding ratio falling from 118.6 per cent to 118.1 per cent and its current funding ratio increasing from 114.7 per cent to 116.2 per cent.

Pensioenfonds Detailhandel reported that its policy funding ratio declined from 122.3 per cent to 122 per cent, while its current funding ratio increased from 118.9 per cent to 120.3 per cent.

Amid the several pension funds reporting a decrease in their policy funding ratios, Pensioenfonds SNS Reaal’s remained at 117.2 per cent in April.

Meanwhile, its current funding ratio rose from 115.7 per cent to 116.3 per cent.

“The policy funding ratio remained the same in April,” the pension fund stated.

“The policy funding ratio has fewer peaks and troughs, because it is an average of the current funding ratios over the past 12 months.

“Interest rates rose slightly in April. Due to the rise in interest rates, liabilities and fixed-income securities, including derivatives, fell. The value of the shares also fell.

“This ultimately resulted in an increase in the [current] funding ratio from 115.7 per cent to 116.3 per cent.”

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