Dutch pension fund Pensioenfonds PostNL has revealed that its current funding ratio fell by 11.4 percentage points in December to 130.6 per cent.

The decline was largely driven by the 10 per cent increase in pensions indexation on 1 January 2023.

Pensioenfonds PostNL stated that this increase took a “significant chunk” out of the pension fund’s assets, which had a negative effect on the funding ratio.

Without the increase in pensions, the coverage ratio would have been slightly higher than in November, according to Pensioenfonds PostNL.

A year prior, in December 2021, the current funding ratio was 126 per cent.

The current funding index is measured on the value assets and liabilities, with a fall in investment value and an increase in interest rates almost cancelling each other out in December.

The pension fund’s policy funding ratio, which is the average of the current funding ratios over the past 12 months, rose slightly in December from 134.4 per cent to 134.8 per cent.

The current funding ratio from December 2021 was excluded from the calculation of the policy funding ratio.

“The board regularly discusses developments in the markets and in the investment portfolio with the investment advisers,” Pensionfonds PostNL stated.

“This means that it is closely monitored whether and when additional measures are necessary. No additional measures are required at this time.

“The pension fund also has a crisis plan that offers guidance.”

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