Dutch pension funds had an average coverage ratio of 104% at the end of May, down 3% on April, according to figures published on Tuesday by human resources advisory group Aon Hewitt.

The drop in coverage means the funds have fallen below the minimal required coverage ratio of 105%.

The funds have been hit by low interest rates. The market rate was higher in May than in April, but the three month average used for the calculations no longer included February when interest rates were at their highest.

A number of funds were forced to cut pension payouts this year and further cuts will be inevitable if coverage ratios do not recover sufficiently by the end of the year.