Dutch pension fund PME has reported a 'strong' current funding ratio of 127.7 per cent at the end of the second quarter (Q2) of 2026, offering a good starting position ahead of its intended transition to the new Dutch pension system on 1 January 2027.

Publishing its interim update, the fund reported that the current funding ratio has increased from 121.5 per cent at the end of the first quarter (Q1) of 2026 to 127.7 per cent, while its policy funding ratio has increased from 122.2 per cent at the end of Q1 to 124.6 per cent at the end of Q2.

Commenting on the update, PME chairman of the Executive Board, Alae Laghrich, said: “As the board, we are responsible for ensuring a managed, ethical and balanced transition to the new pension scheme for all our members. Significant progress has been made in this regard in recent months.

“With a funding ratio of over 127 per cent, PME is in a strong financial position. As the funding ratio at the time of transfer is crucial to our members’ starting position in the new pension scheme, we have taken additional measures to protect the funding ratio against market fluctuations.”

This has included reducing the interest rate risk and temporarily reducing the equity risk. Lowering equity risk means PME is less sensitive to potential declines in share prices, but the trade-off is that PME misses out on returns if share prices rise.

In addition, Laghrich highlighted that the fund has amended its implementation plan based on the latest insights and decisions, which was done in close cooperation and consultation with the social partners and the Accountability Body. Throughout this process, he said PME has considered the interests of all PME members.

He also reported that the fund's discussions with De Nederlandsche Bank (DNB) on how to shape the transition to the new system are "virtually complete".

“We have now submitted the revised implementation plan to DNB. Over the coming months, we will be working with our operational partners, MN and TKP, on the final operational preparations,” he continued.  

“We are carrying out migration simulations and extensively testing the new processes and systems. In this way, we are ensuring that we are ready for the transition not only financially and administratively, but also operationally.”

The results also showed that PME’s total investment return rose to 5.6 per cent in Q2, up from 0.3 per cent in Q1, bringing the total investment return for 2026 up to 5.9 per cent so far.

The fund’s pension assets also increased from €60.3bn at the end of Q1 to approximately €63.8bn at the end of Q2. Meanwhile, this was offset by the fund’s pension liabilities, which also increased from €49.6bn to €50bn over the same period.

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