The two biggest Dutch pension funds, the civil service ABP and the healthcare fund PFZW will not have to lower pension payouts this year after all.

Both funds had a coverage ratio of just over the key 90% at the end of 2020, which means they do not have to cut payments under current rules. Between them, the two funds cover some six million people – both in work and pensioners.

The big engineering and construction centre funds are also likely to safe from making cuts, the Financieele Dagblad reported on Tuesday. However, workers in several other sectors, including the cleaning and food industries, may still end up with lower pensions, and the travel industry scheme definitely faces cuts, the FD said.

The government has reduced the amount pension funds have to hold in reserve to 90% pending the introduction of a new pension system which is more dependent on market fluctuations.

However, they will have to restore coverage of 100% from 2026.

Pension funds have been struggling since the last banking crisis to cover their liabilities in full because sustained low interest rates have made it difficult to secure a return on their investments.