Dutch pension fund PME has revealed an improvement in its funding ratios despite a negative return on its investments in the third quarter of 2026.

Over the quarter, the pension fund’s current funding ratio increased from 127.7 per cent to 132.8 per cent.

Its policy funding ratio, which is the average of the previous 12 months’ current funding ratios, rose from 124.6 per cent to 126.7 per cent in Q3.

However, PME’s investment return in the third quarter of 2026 was -4.8 per cent, while its Q1-Q3 return was 0.8 per cent.

Its pension assets fell over the month from €63.8bn to €61bn, although its pension liabilities also decreased, from €50bn to €45.9bn.

The improvement in the funding ratio in Q3 was primarily driven by the increase in interest rates, which also affected the return of its matching portfolio.

PME is set to transition to the new pension system on 1 January 2027, and its executive board chair, Alae Laghrich, said its strong financial position meant the pension fund had an excellent starting point for the switch.

“But we are not there yet,” Laghrich continued. “Because the funding ratio at the time of the transition determines the personal pension pots and the pensions of our beneficiaries, we have deliberately provided extra protection against market fluctuations.

“If the economy and interest rates do not show major fluctuations, our beneficiary participants can count on a 12.6 per cent increase in their pension in 2027.

“That is a nice prospect, but we must also be clear: the final amount will not be fixed until early next year.

“In February 2027, they will receive a letter with their final new monthly amount, and in March this will be in their account, including the retroactive payment for January and February.

“Providing clarity and carefully guiding people through this transition remains our top priority.”

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