The current funding ratio for Dutch pension fund PNO Media fell from 118.7 per cent in September to 116.4 per cent at the end of October, its funding update has revealed.

PNO Media said investments and interest rates had the greatest influence on the change in the funding ratio.

Over the month, the pension fund’s return on investment was -0.3 per cent, resulting in a decrease of the current funding ratio by 0.3 percentage points.

However, the decrease in the actuarial interest rate caused a decrease of 1.7 percentage points in the current coverage ratio in October.

The update also showed that its policy funding ratio was 117.6 per cent.

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, PNO Media will use temporary rules to increase and decrease pensions.

The bridging plan states it will increase pensions if the current coverage ratio after indexation is higher than 110 per cent. The board will soon decide whether pensions can be increased as of 1 January 2025.

The plan states that pensions must be reduced if PNO Media’s calculations show that it will not achieve a coverage ratio of 102.3 per cent on 1 January 2027.

---