Friday 23 August 2019

Investment company HAL has the healthiest Dutch pension fund

Source: Static.autoblog.nl

The pension fund of investment group HAL is the healthiest in the country with a coverage ratio of 184%, the Telegraaf reported on Friday. This means HAL has €1.84 in its pension fund for every euro it is obligated to pay out.

The family doctors’ pension fund is also looking healthy with a coverage ratio of 132%, the paper said.

The HAL pension fund was founded to pay the pensions of 1,500 former workers from the Holland-America shipping line but the company has since been turned into an investment group. Currently just 42 people are paying pension contributions.

The Netherlands boasts a strong system of pension funds meaning that pensioners are generally well taken care of in their retirement years The average employee contributes 7% of his or her salary to a pension scheme while the employer places double that amount into the account.

Nevertheless, central bank figures show the majority of pension funds still don’t have enough assets to meet minimum requirements, the Telegraaf said.

The four very large sector funds are performing especially badly, the central bank said. Civil servants pension fund APB had a coverage factor of 96.3% in mid-2017, the care sector pension funds Zorg & Welzijn had a coverage ratio of 94.2% while the two funds in the metals sector had coverage ratios of just over 96%.

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