Civil service pension fund ABP, one of the biggest pension funds in the world, is again failing to meet the central bank’s agreed coverage ratio, news agency ANP reports on Thursday.

Over the first six months of this year, ABP’s coverage ratio has fallen to 95%, meaning the fund only has enough assets to cover 95% of its pension obligations. The central bank demands a coverage ratio of 105%.
ABP, which published half yearly results on Thursday, said the decline is due to low interest rates, meaning it has to set aside more cash to fund pension payments.
The fund hopes to restore its financial base by increasing pension premiums by one percentage point from July 1. The increase, which is temporary, will increase workers’ monthly premiums by an average €8, ANP says.