Sign In

Financial situation deteriorated in third quarter, despite solid return

10/24/2019

Pensioenfonds PGB’s financial situation has unfortunately deteriorated in the third quarter. This was not due to the return, which was 14.8% for the first nine months. Like many other pension funds, Pensioenfonds PGB was hit hard by the sharp decline in interest rates in August. And on top of this, there are the consequences of the new calculation rules for future pension commitments. As a result, the chance of having to reduce pensions has increased.


Quarterly report
In our quarterly report published today, Chairman Ruud Degenhardt says about this: “The developments in recent months have not only been a major setback for our participants, but also for millions of other people who receive or build up pensions. We are pleased that Social Affairs Minister Wouter Koolmees is willing to work with the sector to find a solution. This is justified by the current special circumstances and the very negative consequences for the confidence in our pension system and the support for its renewal.”
 
Policy coverage ratio as at 30 September: 104.1% 
The financial situation of the past few months is reflected in the policy coverage ratio, which is a 12-month average. This coverage ratio decreased in the third quarter, from 107.1% on 30 June 2019 to 104.1% on 30 September 2019. More information on the development of the policy coverage ratio can be found on our website.
 
Current UFR coverage ratio as at 30 September 2019: 98.3%
The current UFR coverage ratio decreased from 103.3% to 98.3% in the 3rd quarter. This concerns the so-called UFR coverage ratio, which is a snapshot of the position at the end of the month.
 
Return on investments up to and including 30 September 2019: +14.8% (in the 3rd quarter: 3.2%
The return on investments was 14.8% in the first three quarters. The investments for hedging the interest rate risk (Matching) showed a return of 16.4% in this period. Real assets (Return), such as equities, showed a return of 13.7%.
 
Investment returns defined contribution schemes
The returns per age bracket of our defined contribution schemes were positive in the third quarter of 2019: +2.2% for participants up to age 37; +2.6% for participants aged 38-47; +3.0% for participants aged 48-57; and +3.4% for participants aged 58-68. The returns for this year until the end of September can be found here.


Do you need more information? Please consult our quarterly report.