One in three Dutch pension funds are in such severe financial trouble they will have to either hike premiums or cut payouts, the NRC reports on Saturday.

The paper bases its claims on ‘well-informed sources’ within the pension sector. Latest figures from the central bank show almost 200 pension funds are not meeting the official 105% coverage ratio and three-quarters of those are in such trouble that ‘drastic action’ is necessary.
The decision on whether or not to raise premiums or cut pensions will be taken in spring 2012 and the measures will come into effect the following year, the paper says.
Pension funds which have seen their assets plunge because of stock market volatility include civil service fund ABP, healthcare sector fund Zorg & Welzijn and the engineering pension fund PME.