Dutch pension fund PME Pensioenfonds saw it current funding ratio increase to 115.6 per cent over the month of August, it has revealed.

This represents a 5 percentage point increase on the end of July, when the current funding ratio was 110.6 per cent.

PME, which represents 340,000 members across 1,400 employers in the metal and technology industry, also saw its policy funding ratio increase from 108.4 per cent to 109.4 per cent during the same period.

If the fund’s policy funding ratio remains above 105 per cent at the end of the year, it will be able to increase members’ pensions.

The current and policy funding ratios have increased since the beginning of the year, with the current funding ratio standing at 105.4 per cent at the end of January, while the policy funding ratio was 103.9 per cent.

The current funding ratio shows the relationship between the fund’s assets and liabilities each month, with the policy funding ratio being the average funding ratio over the past 12 months.

"Because the policy funding ratio ended just below 100 per cent at the end of 2020, we were able to make use of Minister Koolmees' exemption scheme," PME noted.

"As a result, pensions did not have to be reduced in 2021."

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