Dutch pension funds, Pensioenfonds PostNL (Post NL) has submitted a revised recovery plan to Dutch pension regulator, De Nederlandsche Bank (DNB).

Its revised funding plan follows come with the announcement that its current funding ratio fell to 98.9 per cent in March 2020, down from 104.7 per cent. In addition, its policy funding ratio fell to 108.3 per cent in March 2020, down from 109.5 per cent at the end of February.

It said the cause of the decrease was a negative return on its investments during the month. However, interest rates rose slightly over the month, which it said had a small positive effect in its obligations.

PostNL explained that based on its investment policy, its policy funding ratio must be at least 116.5 per cent according to DNB.

This would allow the fund to have enough money to pay the pensions as well as enough reserves to absorb financial setbacks, PostNL said.

“Our policy funding ratio has been below 116.5 per cent for some time (i.e. 110.6 per cent as of December 31, 2019). According to DNB, this is therefore too low. That is why we had to come up with a recovery plan,” the fund stated.

Under the revised recovery plan, the policy funding ratio should gradually increase over the coming years, hitting 117.6 per cent by 31 December 2021.

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