financial position

What is the position?

The policy coverage ratio (average coverage ratio over the past 12 months) at the end of March 2022 is 119.2%. The current coverage ratio as of the end of March is 125.0%. 

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How does this affect your pension?

In the short term, a low funding ratio has no implications for benefits and pension accrual. The Pension Fund has enough cash to be able to pay the pensions. 

We will decide at the end of the year whether we are able to increase the pensions next year, on the basis of the Fund’s financial position at the end of September. The policy funding ratio at that time needs to be at least 110% to allow for full or partial indexation.


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Funding 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 ratio

Frequently asked questions

  • A funding ratio of around 124.5% would give us adequate financial headroom to increase the pensions fully in line with the increase in wages and prices (indexation).

  • 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.

  • Assumptions are involved in the calculations in the recovery plan, for instance regarding the development of interest rates and the return. How things actually develop through the year may vary from these assumptions. This is why the fund has to prepare an updated recovery plan each year.