Indexation of pensions is more difficult for pension funds. The average funding ratio of the Dutch pension funds in the past year fell on balance
.
At the end of December 2014, the coverage ratio stood at 108% a decrease of one percentage point compared to the previous month. Compared to the end of December 2013 the decline also amounts to a percentage point.
According to figures from consultant Aon Hewitt, who keeps a daily basis the amount of the average coverage ratio.
No discount
Because pension funds by January 1, 2015 no longer can rely on the three month averaging, the average funding ratio drops to 103%. That’s below the regulatory minimum of 104.3%
Pension funds will however not immediately cut:. Under the new rules as of 1 January, the average coverage rate over the last twelve months before determining. As of December 2014, which cover 110%.
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