In early 2019, share prices recovered. This has improved our financial situation in the first quarter. “At the same time, we have to conclude that the high return of more than 8 percent in the first quarter did not result in a significantly higher current funding ratio. This is due to the lower interest rate”, according to the chairman of the Management Board of Pensioenfonds PGB in the quarterly report published today.
The chance of a reduction of the pensions in 2020 fortunately remains small. Only once our funding ratio exceeds 110%, will be we able to increase the pensions. This will take place in small steps.
Policy funding ratio as at 31 March 2019: 108.0%
The financial situation of the past few month is reflected in the policy funding ratio, which is a 12-month average. This funding ratio decreased from 108.7% to 108.0% in the first quarter as at 31 March 2019. More information on the development of the policy funding ratio can be found here.
Current UFR funding ratio as at 31 March 2019: 106.1%
The current UFR funding ratio increased from 103.8% at year-end 2018, to 106.1% in the 1st quarter. This concerns the so-called UFR funding ratio, which is a snapshot of the end of the month.
Return on investments in 1st quarter 2019: +8.2%
A positive return on investments (+8.2%) was made in the 1st quarter. The investments to hedge the interest rate risk (Matching) showed a positive return of +6.4% in the 1st quarter. Investments to achieve an extra return (Return) yielded a return of +9.7% in the 1st quarter.
Investment returns Defined Contribution schemes
The returns per age category of our defined contribution schemes increased. In the 1st quarter of 2019, the return fluctuated between +8.2% (for participants aged 58-68) and +9.2% (for participants up to age 37).
Do you need more information? Please consult the quarterly report.