Engineering sector pension fund avoids forced cuts

The engineering sector pension fund PME appears to have escaped the need to cut payouts next year in order to increase its assets, the Financieele Dagblad reports on Thursday.


PME was one of 14 pension funds which may have been forced to cut payouts by the central bank because its coverage ratio was too low.
But now the central bank has given its backing to the fund’s recovery plan, tempering the threat of action.
PME is the fifth biggest pension fund in the country with 150,000 pensioners and €23.7bn under management.
The central bank says pension funds should have a coverage ratio of 105%, meaning they should have €105 in assets for every €100 of obligations.

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