Dutch pension funds slowly make their way to recovery
Friday, September 21, 2012
Increasing share prices have resulted in a higher average coverage ratio of Dutch pension funds.
Compared to June the funding levels of the funds increased by an average of 3 percentage points to 97%.
However, the funds need a minimum of 105% to comply with the rules set by the Netherland's central bank, DNB. Currently 231 schemes do not reach this funding level and will have to take drastic measures if the trend continues. This could result in 4.9 million members and 2.5 million pensioners seeing their premiums rise and their pensions cut.
Already, most pension rights and payments have not increased in 2012, seeing them lack behind inflation and wage development, thus creating a fall in spending power,
At the same time, DNB announced that the total pension premiums over 2012 have risen from 16.9% to 17.4% of people's salary.
First published 21.09.2012
azeevalkink@wilmington.co.uk
