Several Dutch pension funds have published December updates for their schemes, with mixed results in their current funding ratios.

Pensioenfonds Hoogovens’ current coverage ratio rose from 119.1 per cent to 122.3 per cent in December.

At the beginning of 2024, the current coverage ratio was 121.2 per cent. The discount rate had a negative effect of 5.7 percentage points on the development of the current coverage ratio this year.

The value of the invested capital increased from €9,828m to €10,415m in 2024, which increased the current coverage ratio by 9.9 percentage points.

The granted pension increase had a negative effect of 4.1 percentage points on the current coverage ratio.

The policy coverage ratio was therefore 18.9 percentage points lower than the coverage ratio for future sustainable indexation (TBI). The TBI is the coverage ratio from which allowances not granted in the past may be made up.

In addition to this, Stichting Beroepspensioenfonds Loodsen (BPL), the Dutch pension fund for pilots, estimated that the current funding ratio remained unchanged, as at the end of November it was 125.4 per cent and at the end of December 2024 was 125.4 per cent.

BPL’s estimated policy funding ratio increased from 124.1 per cent at the end of November to 124.6 per cent at the end of December 2024.

Meanwhile, the current funding ratio for Dutch pension fund PNO Media fell from 114.6 per cent at the end of November to 114.3 per cent at the end of December.

Despite the fall in funding ratio, the board has decided to increase pensions by 2.54 per cent as of 1 January 2025. The increase was incorporated into the December funding ratio and will decrease the current funding ratio by 2.9 percentage points.

According to PNO Media’s update, investments, interest rates and the increase in pensions had the greatest influence on the change in the funding ratio. At the same time, other factors played a smaller role.

While the return on investments was -1.5 per cent in December, which caused a decrease in the current coverage ratio by 1.8 percentage points, the increase in the actuarial interest rate led the current funding ratio to rise by 4.7 percentage points in December.

PNO Media will switch to the rules of the new pension system on 1 January 2027. To bridge the transition period to the new pension system, temporary rules are used to increase and decrease pensions.

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