Pension funds recover, but not yet enough

Friday 23 October 2009

The Netherlands' biggest pension funds have managed to boost their assets over the past few months but are still not at levels to allow an increase in pay-outs next year, news agency ANP reports.

Three big funds, the health service and two engineering sector funds, presented their third-quarter results on Thursday.

Best performer is the PGGM health service fund which has increased its coverage ratio from 89% at the end of March to 107% now. This means it has €1.07 to fund every €1 of pension payments.

The Dutch central bank wants funds to maintain a coverage ratio of 105%, but the economic crisis and collapse in share prices forced most funds well below this level.

The engineering funds boosted their coverage ratio to 97% and 101%, ANP said.

© DutchNews.nl

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