📋 Tender Overview
The financial position of Dutch pension funds improved in the fourth quarter of 2019 compared to the previous quarter. Liabilities went down EUR 96 billion to EUR 1500 billion. Pension funds assets also fell by EUR 6 billion to EUR 1560 billion. The financial position improved since the decline in liabilities exceeded the decrease in assets.Funding ratio up to 104.0The pension funds funding ratio went up 5.8 percentage points to 104.0 at the end of the fourth quarter see Figure 1. The funding ratio reflects a pension funds current financial position expressing the ratio between available assets and liabilities. By contrast the policy funding ratio fell by 1.1 percentage points to 102.2. The policy funding ratio is the average of the funding ratios for the past twelve months. It fell because the funding ratios in the fourth quarter of 2019 were lower than those in the fourth quarter of 2018. The minimum statutory required policy funding ratio differs for each pension fund but in almost all cases hovers around 104.2.Most members are served by pension funds whose policy funding ratio is below the statutory limitAt the end of the fourth quarter of 2019 3.9 million active members were served by one of the 75 pension funds with a policy funding ratio below 104.2. This concerns 68 of all active members see Figure 2. These pension funds also represent 5.8 million deferred members and 2.3 million pensioners totalling 58 of all deferred members and 68 of all pensioners respectively.The policy funding ratios of 56 pension funds are above the 104.2 limit but below the limit of 110 above which full or partial index-linking is permitted. Together these funds represent 1.4 million active members 3.4 million deferred members and 0.5 million pensioners. A total of 72 pension funds have a policy funding ratio of 110 or more and they are permitted to apply full or partial index-linking. Together these funds represent 0.4 million active members 0.8 million deferred members and 0.6 million pensioners.
