Average funding ratio of Dutch pension funds stood at 106.3%
The Dutch pension sector’s average funding ratio came to 106.3% as at 31 March 2021. This represents a 6.0 percentage point increase from 31 December 2020 (see Figure 1). The funding ratio rose for the fourth consecutive quarter, and it is above the figure for the first quarter of 2020, which was 89.6%. The funding ratio reflects a pension fund’s current financial position, expressing the ratio between available assets and liabilities.
The policy funding rate came to 96.9% as at 31 March 2021. This represents a 1.9 percentage point increase from 31 December 2020. The policy funding ratio is the average of the funding ratios for the past twelve months. It increased because the funding ratio in the first quarter of 2021 was higher than that in the corresponding quarter of 2020.