12 April 2016
News release
Low interest rates put coverage ratio under pressure
The policy coverage ratio at the end of March 2016 was 115.4%. The coverage ratio is the basis for decisions by the pension fund, for example regarding any increase or decrease in the pensions. The policy coverage ratio is the average monthly coverage ratio over the past 12 months. Like all pension funds in the Netherlands, our pension fund is affected by the low level of interest rates. This is reflected in the monthly coverage ratio, which at the end of March was 110.1%, which is significantly below the average seen over the past year.
Why do low interest rates affect the coverage ratio?
Low...