When the funding ratio is referred to by us or the media, this relates to the economic funding ratio or the policy funding ratio. Read about this month's funding ratios and the other funding ratios that we take into consideration.
Last month's funding ratio
We publish the current funding ratio on the 15th of each month. View the funding ratio for this month
The funding ratios we use
We use five funding ratios:
The economic funding ratio
The policy funding ratio
The future-proof indexation funding ratio
The strategic required funding ratio
The minimum required funding ratio
Economic funding ratio
The economic funding ratio is the most recent funding ratio. We use the current rate of interest to calculate the value of the investments (the pension assets) and the liabilities (the pension commitments).
Policy funding ratio
The policy funding ratio is the average funding ratio for the past 12 months. When determining this ratio, we do not calculate the pension commitments in the same way as we do for the economic funding ratio. Instead, we use the interest rate term structure, as fixed by the Dutch Central Bank (DNB), as basis. The Dutch Central Bank (DNB) uses the policy funding ratio to work out whether a pension fund has a shortfall. The policy funding ratio is also a relevant factor for the pension fund's indexation policy and reduction policy.
The other funding ratios
The future-proof indexation funding ratio is important for our indexation policy. The strategic required funding ratio indicates whether we have a buffer that is high enough to ensure that in the following year our funding ratio will remain above 100%. The minimum required funding ratio indicates the level we do not want to go below, as otherwise we may face a funding shortfall.
The table below shows the monthly economic funding ratios and policy funding ratios since the start of 2017.
|Economic funding ratio||2017||2018||2019|
|Policy funding ratio||2017||2018||2019|