Dutch pension funds experienced “cautiously positive” funding level improvements in the first quarter of 2023, according to the Dutch Federation of Pension Funds.

The federation stated that, in many cases, capital positions and funding ratios rose somewhat in Q1.

“Developments are still tentative, but it is good to see that these slight improvements are occurring across the board,” the federation noted.

“In addition to hopes for a stable and better international economic situation, the entire Dutch pension sector now expects political clarity regarding the Future Pensions Act soon. The new system is expected to be discussed in the Senate in May.”

Pension fund ABP’s financial position improved slightly in the first quarter, with a positive investment return of 2.3 per cent.

Its assets increased by almost €11bn to €470bn, which “more than compensated” for the increase in liabilities driven by falling interest rates.

As a result, ABP’s current funding ratio increased from 110.9 per cent to 111.9 per cent, while its policy funding ratio remained at 118.6 per cent.

Meanwhile, PME saw an investment return of 2.41 per cent in Q1 2023, with an increase in assets to €51.1bn more than offsetting a rise in liabilities to €45.8bn.

Its current funding ratio rose from 110.4 per cent to 111.5 per cent over the quarter.

PMT also saw its current funding ratio rise over the same period, from 106.8 per cent to 107.5 per cent, while its assets rose by €1.7bn to €77.1bn amid a 2.1 per cent investment return.

Pension fund PGB revealed a current funding ratio rise of 1.4 percentage points to 114.7 per cent over the quarter, and Bpf Bouw’s current funding ratio increased to 122.1 per cent.

Commenting on ABP’s improved financial position, ABP board chair, Harmen van Wijnen, said: “I am pleased that after a turbulent investment year in 2022, we made money again this quarter with our investments. Our financial position is in order and we have some fat on our bones.

“I look forward to the moment when the Senate approves the Future Pensions Act. They rightly take the time to study this law carefully.

“At the same time, it is clear to us at ABP that the law must be enacted: all our participants benefit from a renewed, modern pension system. A system that suits the working participant who changes jobs more often and who wants an indexed pension. And that also suits pensioners, for whom a lot of pension money has sometimes not ended up in the bank account, but has been stuck in the buffer due to strict rules. That can and must change.

“I assume that the Senate agrees with this and therefore agrees with the Future Pensions Act. We have started with thorough preparations to ensure a smooth transition. Our relocation plan still focuses on 2026.”

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