Crisis hits biggest pension funds

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.

Thank you for donating to

We could not provide the Dutch News service, and keep it free of charge, without the generous support of our readers. Your donations allow us to report on issues you tell us matter, and provide you with a summary of the most important Dutch news each day.

Make a donation