Several Dutch pension funds have published July funding updates for their schemes, with all recording decreases to their funding ratios.

The funding ratio of Pensioenfonds Hoogovens fell to 123.1 per cent in July, down from 125.1 per cent in June. At the beginning of 2024, the funding ratio was 121.2 per cent.

The pension fund said the actuarial interest rate this year has had a negative effect of -0.6 percentage points on the development of the current funding ratio up to the end of July.

Over the same seven-month period, the value of invested assets has increased from €9,828m to €10,180m, leading to a 6.1 percentage point increase on the funding ratio. However, the increase given to pensioners has had a -4.1 percentage point impact on the funding ratio. It said that a few other factors have had a smaller impact on the funding ratio.

Regarding the policy funding ratio (the 12-month average funding ratio), Pensioenfonds Hoogovens said this fell from 129.5 per cent to 128.5 per cent over July.

For Pensioenfonds PostNL, the policy funding ratio fell slightly to 132.6 per cent over July, down from 132.8 per cent. In terms of its current funding ratio, this stood at 133.3 per cent at the end of July, down from 134.2 per cent in June.

The pension fund explained that interest rates fell slightly in July, which harmed the funding ratio. However, this was partially offset by an increase in the value of investments over the month.

Pensioenfonds UWV reported a funding ratio of 121.1 per cent in July, down from 122 per cent in June. In addition, Pensioenfonds SNS Reaal said its funding ratio fell from 121.5 per cent to 119.9 per cent over July.

“Due to a fall in interest rates in July, liabilities increased and the value of investments also rose. The value of equities fell slightly. On balance, this led to a fall in the current funding ratio from 121.5 per cent to 119.9 per cent,” the pension fund said.

However, its policy funding ratio increased slightly from 119 per cent to 119.1 per cent over the month.

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