The policy funding ratio of Dutch pension scheme Pensioenfonds PostNL ended 2021 at 121.4 per cent, it has revealed.

The policy funding ratio is the average of the current funding ratios of the past 12 months. Revealing the results for December 2021, the fund said it had seen an increase of 1.3 percentage points, up from 120.1 per cent.

The policy funding ratio rose sharply throughout 2021 starting the year at 104.4 per cent, climbing 17 percentage points over 12 months. The policy funding ratio has improved significantly because the funding ratio has also increased over the year.

At the end of December 2021, the funding ratio was 126.2 per cent, up from 123 per cent at the end of November 2021. This increase, the fund said, was partly due to a positive investment result. However, it was largely affected by the rise in interest rates.

Over the year as a whole, it was mainly the positive investment result (7.6 per cent return) that contributed to the strong increase.

The strong results mean that the fund increased pensions by 1.95 per cent as of 1 January 2022, which compensates for part of rising inflation.

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