The funding ratio of Dutch public sector pension fund ABP was bolstered by a rise in the actuarial interest rate in 2025, despite a negative return of -1.6 per cent, its annual report has revealed.

The funding ratio ended the year at 123.5 per cent, up from 111.7 per cent.

Total assets stood at €533.1bn at the end of 2025. The healthy funding position allowed the pension fund to increase pensions by 2.84 per cent from 1 January 2026.

ABP Executive Board chair, Harmen van Wijnen, commented: “2025 was a year of renewal and confidence. We are well on track towards a pension scheme that is clearer and more future-proof.”

However, during the first quarter of 2026, ABP’s financial position weakened; its funding ratio fell to 119.1 per cent at the end of March, which it attributed to a negative return on investments and a fall in interest rates.

Van Wijnen said the unrest in the Middle East made for a “difficult first quarter”.

“January and February were good months for investments. However, news of the war in Iran led to falls in the financial markets and a slight decline in the funding ratio.

“At the same time, our investment portfolio is structured to protect our investments – and therefore our pension assets – even in a turbulent world.

"We invest across many countries and in various types of investments, with a long-term perspective. When one asset class performs less well, another usually performs better. And vice versa. This makes us more resilient to fluctuations,” he added.

The pension fund plans to switch to the new pension rules on 1 January 2027, and in 2025, its board accepted the mandate from the trade unions and employers’ organisations to implement the revised pension scheme.

Van Wijnen said the pension fund is targeting a funding ratio of at least 110 per cent at the time of the transition.

“So, at present, the funding ratio is high enough,” he said.

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