Dutch pension funds’ funding ratio stable

Dutch pension funds’ funding ratio stable

The average funding ratio of pension funds has remained relatively stable in the past two months, according to the Dutch central bank (DNB). At the end of February 2012, it stood at 99% from 98% at end-December 2011. The funding ratio – the ratio of available assets to liabilities – was influenced in particular by rising equity prices on the one hand and falling long-term interest rates on the other.

The pension sector as a whole was still facing a funding deficit at the end of February. A funding deficit is defined as a funding ratio below 105%, the minimum required own funds a pension fund must hold at all times. At end-February, 205 Dutch pension funds, totalling 4.9 million active members and 2.2 million retirees, faced funding deficits. At end-December, there had been deficits in 229 pension funds numbering 5.0 million active members and 2.3 million retirees.

Source: DNB

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