ING CDC Pensioenfonds’ funding ratios as at 30 June 2015 are known. The funding ratio is 119% and the policy funding ratio is 123%.
The funding ratio indicates whether the fund’s financial position on a certain reference date is adequate enough to pay out pensions accrued now and in the future. The higher the funding ratio, the better the fund’s financial position. A funding ratio of 100% indicates that the fund’s financial position on the reference date is adequate enough to pay out pensions that have been built up in the fund. The funding ratio as at 30 June 2015 amounts to 119%.
The policy funding ratio is equal to the average of the funding ratios for the preceding twelve months. With effect from 2015, the policy funding ratio provides the fund with a benchmark for making policy decisions, such as determining the amount of headroom available for indexation and the adequacy of the fund’s reserves. By taking the average for the preceding twelve months, important decisions no longer hinge on the funding ratio prevailing on any given date. The policy funding ratio as at 30 June 2015 thus amounts to 123%.
The Dutch Central Bank has decided on a new Ultimate Forward Rate (UFR) per 15 July 2015. The UFR is part of the actuarial interest rate with which pension funds calculate the value of their future obligations. Due to this decision, the fixed level of the UFR drops from 4,2% to 3,3%. ING CDC Pensioenfonds currently calculates the scope of the negative impact on the funding ratio. The fund keeps you informed through messaging on the website.
The pension fund publishes its funding ratios on or around the 15th day of each month. The graph below shows the situation as at 30 June 2015.
Click here to see funding ratio developments in 2014 and 2015.
