The current coverage ratio of the Netherlands’ Pensioenfonds Hoogovens fell from 123.6 per cent to 122.6 per cent in September, its latest funding update has revealed.

However, the update showed that, despite the dip in the funding level, this still marks a slight improvement since the beginning of the year, when the current coverage ratio was 121.2 per cent.

According to the update, the value of the invested capital increased from €9,828m to €10,350m in 2024 so far, which increased the current coverage ratio by 8.5 percentage points during the month.

However, the discount rate had a negative effect of 3.7 percentage points on the development of the current coverage ratio.

In addition to this, the granted pension increase had a negative effect of 4.1 percentage points on the current coverage ratio.

The fund also shared an update on its policy coverage ratio, which is the average coverage ratio over twelve months instead of the coverage ratio per month.

This revealed that, in September, the policy coverage ratio fell from 127.7 per cent to 126.4 per cent.

The policy coverage ratio is therefore 17.8 percentage points lower than the coverage ratio for future-proof indexation (TBI).

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