The funding ratio of the Netherlands’ Pensioenfonds Hoogovens fell four percentage points in June to 125 per cent, down from 129 per cent.

At the beginning of 2024, the funding ratio was 121.2 per cent.

The pension fund said the actuarial interest rate this year, to date, has had a positive effect of 3.1 percentage points on the development of the current funding ratio. Furthermore, the investment return to date in 2024 has caused the current funding ratio to increase by 4.4 percentage points. The value of invested assets has increased from €9,828m to €10,054m so far in 2024.

However, the increase in pension payments has had a negative effect on the current funding ratio of 4.1 percentage points. This, and several smaller factors, are the main factors affecting the funding ratio so far this year, the pension fund stated.

Regarding the policy funding ratio, which is the average of the funding ratio over the past 12 months, the pension fund revealed that, in June, it fell from 130 per cent to 129.4 per cent.

“The policy funding ratio is thus 16.7 per cent lower than the funding ratio for future sustainable indexation (TBI). The TBI is the coverage ratio from which non-granted past supplements may be made up,” the pension fund stated.

Last month, the pension fund shared its bridging plan ahead of the transition to the new pension system. It has been agreed by the pension fund and trade unions that if the if the policy funding ratio falls below 105 per cent at any time, the pension fund must reduce pensions so that the funding ratio returns to 105 per cent.

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