Funding ratio declined in fourth quarter
“Interest rates and return on investments have the biggest impact on the funding ratio”
The funding ratio is the ratio between the pension fund’s assets and its commitment to pay out pensions now and in the future. The funding ratio is impacted most by interest rates and the return we make on our investments.
On balance, the pension fund's current funding ratio decreased by 7.4% in the fourth quarter and the policy funding ratio came down by 2.7%.
The funding ratio and policy funding ratio are provisional figures. The final figures will be published in the 2024 annual report.
Development funding ratios
The policy funding ratio is equivalent to the average funding ratio for the preceding 12 months. It determines how much indexation we are allowed to apply to your pension. As a rule of thumb: the higher the policy funding ratio rises above 110%, the more we will be allowed to increase your pension. Increasing your pension (indexation) is important because it ensures your pension retains its purchasing power.
If and how much indexation we will be applying to your pension is a decision our board will make at the end of the year.
This quarterly report has been carefully prepared. The final figures for 2024 will be published in the anual report. You cannot derive any any rights from this report.