Coverage ratios slip again for Dutch pension funds

Aon Hewitt has published figures for the Dutch pension market, which suggest that the coverage ratio on average slipped to 104% by the end of May – below the required 105% ratio.

The human resources consultant said that the ratio slipped because the interest rate average over the previous three months, used to calculate the ratio, fell once the month of February was excluded.

If coverage ratios persist below the required minimum, then pension funds may be forced to cut their payouts.

 

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