Dutch pension fund Pensioenfonds SNS REAAL has reported that its policy funding ratio increased from 115.8 per cent to 116.2 per cent in October 2022.

The policy funding ratio is the average of the current funding ratios over the past 12 months and is what the pension fund board uses as a starting point on whether to increase pensions.

Pensioenfonds SNS REAAL’s current funding ratio increased from 118.9 per cent to 119.7 per cent in October.

The rise was affected by several factors, with interest rates rising slightly over the months, resulting in a fall in liabilities.

Fixed income and equity investment returns fell over the month, although the decline in investments was less strong than the decrease in liabilities.

At the end of October 2022, Pensioenfonds SNS REAAL had assets of €3.02bn and liabilities of €2.52bn.

According to government rules, Dutch pension funds’ assets must exceed liabilities by 15.3 per cent to have a sufficient buffer.

Pensioenfonds SNS REAAL’s policy funding ratio of 116.3 per cent is therefore currently above the required funding ratio and the fund has sufficient financial buffers.

The pension fund's policy funding ratio has increased from 114 per cent in January, while its current funding ratio has risen from 112.7 per cent over the same period.

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