Average funding ratio of Dutch pension funds stood at 100.3%
The pension funds’ average funding ratio came to 100.3% as at 31 December 2020. This represents a 5.0 percentage point increase from 30 September 2020 (see Figure 1). The funding ratio rose for the third consecutive quarter, but it is still below the figure for the fourth quarter of 2019, which was 104.0%. 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 95.0% as at 31 December 2020. This represents a 1.0 percentage point decrease from 30 September 2020 (see Figure 1). The policy funding ratio is the average of the funding ratios for the past twelve months. It fell because the funding ratio in the fourth quarter of 2020 was lower than that in the corresponding quarter of 2019.