ING CDC Pensioenfonds has updated its recovery plan. This needs to be done once a year in order to determine whether the pension fund’s recovery is still on track. Conclusion: your pension fund expects to recover within ten years without having to take additional measures.
ING CDC Pensioenfonds recorded its first reserve deficit on 30 September 2015 and, consequently, published a recovery plan. At year-end 2016, the pension fund still had a reserve deficit. The pension fund then updated its recovery plan. The plan shows that the fund expects to recover within 10 years without having to take additional measures.
What is a reserve deficit?
A pension fund has a reserve deficit if at the end of a quarter, its policy funding ratio is below the required level of capital. The required level of capital is expressed as a funding ratio requirement, which is mainly determined by the fund’s investment policy. ING CDC Pensioenfonds' current funding ratio requirement is approximately 120%.
Annual update
As long as the fund has a reserve deficit, it will have to update its recovery plan every year. As part of the update procedure, the pension fund determines whether its current policy is ensuring that recovery is on track. If progress is too slow, additional measures may be needed after all.
No additional measures
Based on calculations made by the pension fund in early 2017 using the model prescribed by DNB, the pension fund still expects to reach the required policy funding ratio within the ten-year period. The funding ratio will most likely be restored through the pension fund's contribution levels and return on investments. This means no additional measures will be needed.
More information
Click here (Dutch only) to check out the current recovery plan and a list of frequently asked Q&A regarding the recovery plan. We keep you informed by our newsletters.
