Several Dutch pension funds saw further improvements in their funding positions in September 2025, driven mainly by higher investment returns and changes in actuarial interest rates.

Hoogovens Pension Fund reported that its policy coverage ratio, the average funding ratio over the past 12 months, improved, rising from 125.4 per cent in August to 126.1 per cent in September.

However, it remained 18.6 percentage points below the threshold for future sustainable indexation.

The scheme's current coverage ratio, the ratio between the money the fund has and the money it needs to cover liabilities, also increased from 130.7 per cent in August to 131.6 per cent in September, up from 122.2 per cent at the start of 2025.

In 2025, the actuarial interest rate added 10.7 percentage points and investment returns added 2.3 percentage points; however, this was partially offset by a €8m drop in invested capital from €10,411m to €10,403m.

Additionally, the pension increase granted on 1 July 2025 had a negative effect of 3.8 percentage points on the current funding ratio.

PostNL Pension Fund's policy funding ratio increased slightly to 132.7 per cent, with the current ratio reaching 137.3 per cent in September 2025, up from 133.7 per cent a year earlier.

The fund explained that falling interest rates in the past month had a negative impact on the current funding ratio, but an increase in investments offset this.

Continuing the trend, SNS Reaal reported improvements in its funding levels, with its policy funding ratio rising from 122.1 per cent in August to 123 per cent in September.

The value of the fund’s investments increased in September, and due to a slight decrease in interest rates, liabilities increased, leading to a rise in the current funding ratio from 130.2 per cent to 131.8 per cent.

The fund stated that the required policy funding ratio for full indexation is 137.8 per cent as of October 2024, noting that this level depends on market factors such as interest rates and inflation and may change over time.

Pensioenfonds UWV also recorded a positive month for its funding levels, with its policy funding ratio rising from 119.4 per cent in August to 119.8 per cent in September.

Its current funding ratio also rose this month, increasing from 123.8 per cent to 124.5 per cent.

---