Large pension funds still in danger – Financieele Dagblad

The big pension funds have seen something to improve their financial position in March but are still dangerously close to their critical limit. The funds prepare their participants for possible discounts in 2017. This is evident from the quarterly reports that present the five largest pension funds in the Netherlands on Thursday.

So civil servants pension fund ABP came out in late March at a funding level of 90.4%. This is slightly higher than in February, when the largest fund in the Netherlands plunged below the critical 90% threshold, but the situation remains according to ABP-President Corien Wortmann-Kool worrisome. “We are in the danger zone and that means that in 2017 chance of lowering the retirement remains a strong presence.” The coverage ratio indicates to what extent a pension fund pensions (in the future) can pay. Funds end of 2016 are below the norm of around 90% should shorten next year.

Gloomy

the other large funds, despite the slight improvement in March bleak. Peter Borgdorff, director of Care Fund PFZW, argues that there needs to reduce a significant chance that the fund of nurses pensions in 2017 for the first time in its existence. Guus Wouters, director of Metal PMT Fund warns that the day off measures in 2017 get closer.

Because of the turmoil in the equity markets and decline of interest are the pension funds sharply weakened in the first months of 2016. Thus, the coverage Care Fund PFZW plummeted between late December and February by 8% point to 87%. In late March, the fund had been scribbled something and stood at 88.9% coverage.

Funding ratios

Metal Funds PME and PMT end of March had coverage rates of respectively 90.8% and 91.8%. BPF Bouw, the pension fund of the workers, there was as usual a little better, with a coverage ratio of 103.9%. The Fund received the five largest pension funds with 6.1% the highest return in the first quarter, mainly due to a substantial gain on the interest rate hedge. All funds incurred losses on their equity portfolio in the first quarter.

The Pension Federation states in response that the pension cuts outlook is a painful message for pensioners and workers. But the dome of pension qualifies the pain or by pointing out that the financial downturn will be limited to a few euros per month. namely, spread over ten years by the new pension rules may discounts. In addition, the state pension will remain at the same level, according to the Pension Federation.

individual

the government and the Social and Economic Council is currently working on a new system of individual pension pots, but still with collective risk sharing. ABP and PFZW leave in their quarterly reports to know that to find a good development. BPF Bouw believes that the strength of the current pension system in the recent coverage of the low interest rates and the possible reform too little is discussed. “The collective and solidarity elements results that you as an individual can not get,” said Jan Ruis, chairman of BPF Bouw.