What is the position?
The policy funding ratio (the average funding ratio over the past 12 months) stood at 134.6% at the end of September 2024. The nominal funding ratio at the end of September 2024 was 135.1%.
Read moreHow does this affect your pension?
In the short term, a low funding ratio has no direct implication for benefits and pension accrual. The pension fund's buffer suffices to pay out.
At the end of September of any calenderyear, the fund decides if we are able to increase pensions for the year to come. The policy funding at that time should be at least 110% to allow for partial or full indexation.
How big does the buffer have to be?
According to the rules set by the government, our assets must exceed our liabilities by 16.0% (September 2024). So we have to have sufficient assets to be able to pay the pensions, both now and in the future, plus a buffer of 16.0%. This means we will be able to cope with any unexpected decline in the assets. Currently, the policy coverage ratio of 134.6% (September 2024) is above the required coverage ratio. Thus, the pension fund currently has sufficient financial buffers.
Read moreFunding ratio's
The funding ratio of a pension fund specifies the ratio between the assets and the liabilities, and is an indicator of the financial position of a pension fund.
Overview of the funding ratioFrequently asked questions
We strive to increase your pension each year in line with price inflation. This is known as indexation. This is only possible if the Fund’s financial position is sufficient. The Pension Fund Board decides each year whether the pensions can be fully or partially indexed or that no indexation is possible on the basis of the Fund’s financial position.