11/11/2011
By Ilonka Oudenampsen
The funding level of Dutch pension fund ABP has increased from 90 per cent at the end of September to 94 per cent at the end of October, boosted by increased interest rates.
Funding levels of pension funds decreased sharply in the third quarter due to a fall in interest rates. As a result, the big pension funds announced that they might have to cut pension payments if the situation has not improved by the end of the year.
Based on ABP’s recovery plan, which was put in place at the beginning of 2009, the fund needs to have a funding level of above 100 per cent at the end of 2011. If this target is not met, ABP will have to start preparing its members for a cut in their pension payments.
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