The funding ratio of Dutch pension fund ABP saw further improvement in April, increasing from 117.4 per cent at the end of March to 123 per cent.

In addition to this, the scheme’s policy funding ratio, which it highlighted as “especially important”, rose from 106.5 per cent to 108.2 per cent.

This follows previous increases in Q1 2022, when rising interest rates pushed the funding ratio up 6.8 percentage points.

Despite the improvements, the policy funding ratio remains below the 110 per cent threshold legally required to allow the scheme to partially increase pensions.

The scheme also clarified that any possible pension increases will not be able keep up with the recent rapid increase in prices, as prices rose less sharply in the past year, which would be the reference period for any changes.

However, the scheme noted that proposals to relax the rules and allow an increase from 105 per cent are currently working through the House of Representatives, emphasising that if these rules are passed, it will “immediately get to work”.

It also confirmed that it will look at how prices have increased over the past year on 31 October, with a new reference period for a possible increase in pensions in 2023 of 1 October 2023 to 30 September 2022.

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