The Dutch Central Bank (DNB) approves ING CDC Pensioenfonds’ recovery plan to restore its policy funding ratio to a level that exceeds the policy funding ratio within a timeframe of up to twelve years to the required minimum of 118%.
Since 30 September 2015, ING CDC Pensioenfonds has been faced with a reserve deficit. This means that the pension fund’s policy funding ratio (117%) has fallen below the required minimum (118%). To restore the policy funding ratio at the required level, the pension fund submitted a recovery plan to DNB.
No additional measures
ING CDC Pensioenfonds has made calculations for its recovery plan which show that the policy funding ratio will be restored above the required minimum within a timeframe of up to twelve years. Based on the DNB-model, the fund expects to restore the required policy funding ratio in three years’ time. This means that at present the fund does not need to take any additional measures, such as restricting its indexation rates or even cutting pension benefits. The recovery plan does not affect value transfers.
Annual update
As long as the fund has a reserve deficit, it will have to update its recovery plan every year. As part of this update, the fund determines whether its funding ratio will recover and whether additional measures might be needed after all. We keep you informed by our newsletters.
