Four of the Netherlands’ biggest pension funds no longer have enough assets to meet their pension requirements and will not raise pay-outs in line with inflation next year, the Financieele Dagblad reports on Monday.
According to the corporate pension fund association VB, four of the 10 biggest funds had a coverage ratio of between 85% and 95% at the end of November, the paper says.
The healthcare sector pension fund PZW (formerly PGGM) confirmed to the paper that its coverage ratio had fallen to ‘around 95%’. PZW is the second biggest fund in the country, with assets of almost €90bn.
The civil service pension fund ABP, one of the biggest in the world with assets of €200bn, said it is still above the legal limit of 105% but declined to give figures.
The third largest Dutch fund, which covers the engineering sector, said last week its coverage ratio is down to 86%.
The big 10 funds cover the pensions of some four million people – around half of everyone with a corporate pension fund.
The central bank has given the country’s 600 pension funds until April 1 to draw up plans on how to restore the missing assets.
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