The financial position of the biggest five Dutch pension funds has worsened over the past month and four are now below the crucial 90% coverage level.

This means it is increasingly likely that the funds, including the massive ABP civil service pension fund, will have to cut payments again next year. Stock market price drops and extremely low interest rates are behind the fall in value.

ABP, one of the biggest pension funds in the world, now has a coverage ratio of 88%. This means it can only cover 88% of its pension obligations. Health service pension fund Zorg en Welzijn has dropped to 87%, the lowest of the big five.

The average coverage ratio over a year determines whether or not the funds can increase or cut pensions. Last week, the funds warned that the European central bank’s decision to cut interest rates again would make a cut in payouts more likely.

Junior social affairs minister Jetta Klijnsma told MPs on Tuesday afternoon she is extremely concerned about the impact of falling interest rates on pension funds.

She is to hold talks with the Dutch central bank later this week to discuss the situation.