‘Real’ chance of a pension cut in 2021, says biggest Dutch pension fund
Menu

‘Real’ chance of a pension cut in 2021, says biggest Dutch pension fund

Photo: Depositphotos Photo: Depositphotos

SINT MAARTEN/THE NETHERLANDS – The giant Dutch civil service pension fund ABP will not raise pensions in the coming years and says there is a ‘real’ chance it may have to make cuts in two years’ time.

ABP has 2.9 million participants and, with invested assets of €43bn, is one of the biggest pension funds in the world.

The fund’s annual report, published on Thursday, says that its annual coverage ratio – assets as a percentage of its pension obligations – was 103.8% at the end of 2018 – that is just below the legal requirement of 104.2%.

However, by the end of March 2019, the average ratio over the past year had fallen to 102.4% as interest rates continue to pressure results.

The fund’s financial position means that ‘a pension increase is not on the cards in the coming years and there is a real chance that ABP will have to lower pensions in 2021,’ the fund said.

Last year, ABP said it was phasing out all investment in companies associated with tobacco and nuclear weapons.

(DutchNews)

back to top

Soualiga Radio