The policy funding ratio for Dutch pension fund PNO Media fell from 118.2 per cent to 117.5 per cent in the fourth quarter of 2024, despite positive investment returns, its latest funding update has revealed.

The update showed that the current coverage ratio also fell during the period, dropping from 118.5 per cent in September to 114.3 per cent at the end of the year (December 2024).

This was driven by a fall in interest rates, from 2.22 per cent to 2.11 per cent as of December 31, 2024, which resulted in higher obligations and a 2 percentage point lower current coverage ratio in December compared to November.

However, this was partially offset by the positive investment returns, as the current coverage ratio increased by 1.8 percentage points in the same period.

The board also decided to increase pensions by 2.54 per cent, which caused a 2.9 percentage point fall in the current coverage ratio.

Indeed, PNO Media confirmed that, despite the dip in the funding ratio, it's board decided to increase pensions by 2.54 per cent at the end of 2024, as the current coverage ratio after indexation remained above the threshold required (110 per cent).

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