“Despite falling interest rates, our funding ratio remains healthy”
The funding ratio is the ratio of our assets to our commitments. Our commitments are the pensions we have to pay, both 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 fell by 9.2% in the fourth quarter and the policy funding ratio rose by 5.2%.
The policy funding ratio is the average funding ratio for the preceding 12 months. This ratio determines how much indexation we are allowed to apply to your pension. The rule of thumb is: the more the policy funding ratio rises above 110%, the more we are allowed to increase your pension. This is important because indexation ensures the purchasing power of your pension is maintained in times of inflation.
Whether we increase your pension, and by how much, is decided by our managing board at the end of each year. Our financial position at that time determines whether an increase is possible. There is no entitlement to annual increases.
This quarterly report has been carefully prepared. The final figures for 2026 will be published in the anual report. You cannot derive any rights from this report.