Netherlands’ ABP reports 1.1% return in Q3

The Dutch pension fund for those who work in government and education, ABP, has made a return of 1.1 per cent in the third quarter of 2021.

Publishing its quarterly results, ABP revealed its funding ratio at the end of September stood at 105.3 per cent, an increase of 0.8 percentage points. Over the quarter interest rates remained the same and the slight increase in the funding ratio was due to investment performance. Over the three quarters of 2021, the return was 6.7 per cent. Available capital at the end of the third quarter amounted to €528bn.

Commenting, ABP board chair, Corien Wortmann-Kool, said: “Our financial position is continuing to improve. That means that pension cuts next year are unlikely. Unfortunately, this also applies to an increase in pension. We understand the call for an increase in pensions but the reality is that the current rules, which apply to all funds, do not allow for this.”

ABP said its policy funding ratio, which is the average funding ratio over the past 12 months, was 98.8 per cent at the end of September. Under current rules, the policy funding ratio must be higher than 110 per cent for a partial increase in pensions. For a full increase, the limit is 123 per cent.

In addition, the third quarter also saw ABP pay out approximately €2.5bn in pensions. It also welcomed 26,787 new members and 14,830 members retired.

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