Netherlands’ PMT’s funding ratio rises to 101.5%

The funding ratio of Dutch pension fund, PMT, for those working in the metal industry, reported a coverage ratio of 101.5 per cent at the end of the second quarter of 2021.

The coverage ratio increased further from 98.8 per cent to 101.5 per cent, which it attributed to positive returns in the portfolio, in particular, equities

Equities delivered a positive return of 7.3 per cent in the second quarter. Real estate (5.8 per cent) and high-yield investments (2.6 per cent) also had a positive return. The investment return in the second quarter of 2021 was 3.4 per cent.

“As in the first quarter, we see another small step forward in the recovery. It's nice that the coverage ratio is just above 100 per cent, but it's certainly not time to celebrate yet," PMT employer chairman, Terry Troost, said.

“It has been agreed that we will not have to reduce pensions in 2021 and 2022 if the funding ratio is above 90 per cent. We will only know at the beginning of 2022 whether the pensions should be reduced at PMT, when the position of 31 December 2021 is known.”

The scheme’s policy funding ratio stood at 95.6 per cent as at 30 June 2021 up from 92.5 per cent and its assets increased by approximately €3.5bn to €96.6bn. Pension liabilities increased by approximately €0.9bn to €95.2bn as market interest rates fell over the period.

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