The Netherlands’ Pensioenfonds Hoogovens funding ratio falls to 125.6%

Dutch pension fund Pensioenfonds Hoogovens has reported that its current funding ratio fell from 131.7 per cent to 125.6 per cent in December.

This means that the pension fund’s current funding ratio is at the same level as exactly a year ago.

Last year, the actuarial interest rate had a positive effect of 42.7 percentage points on the development of the current funding ratio.

Meanwhile, the value of invested capital decreased from €10,685m to €9,013m during 2022.

The pension fund’s investment return had a negative effect on the current funding ratio of 18.3 percentage points.

Furthermore, the pension increases granted this year had a negative effect on the current funding ratio of 21.1 percentage points.

The Actuarial Association’s life expectancy forecast table, published in September, made a negative contribution of 1.3 percentage points.

Pensioenfonds Hoogovens’ policy funding ratio, which is the average funding ratio over 12 months, remained at 128.6 per cent in December.

The policy funding ratio is therefore 4.5 percentage points higher than the required funding ratio of 124.1 per cent, which means that the pension fund has no reserve shortfall and no recovery plan is in place.

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