Our financial situation has slightly improved in September compared to August. This has somewhat decreased the chance of having to reduce the pensions in 2020, although this chance still exists.
Whether or not the pensions are reduced in 2020, depends on our financial situation on 31 December
In accordance with the current rules, Pensioenfonds PGB is required to reduce the pensions if it is unable to demonstrate on the basis of a compulsory arithmetical calculation (the ‘recovery plan’) that it has a sufficient buffer within the next ten years to pay out all the pensions. For this, we look at our current UFR funding ratio. In August this coverage ratio was close to the lower limit of the compulsory arithmetical calculation. In September, our current coverage ratio fortunately increased a little. Whether or not the pensions have to be reduced in 2020, depends on our financial situation at the end of this year, for in our arithmetical calculation we need to start from the current coverage ratio on 31 December 2019.
|The current UFR coverage ratio was 98.3% as at 30 September 2019, compared to 95.8% on 31 August 2019. |
The policy coverage ratio, which is an average over 12 months, stood at 104.1% on 30 September 2019. On 31 August, this was 105.2%.
We will keep you informed
We will keep you informed of our financial situation on our website and via our digital newsletter PGB Bericht until we have made a final decision as to whether pensions have to be reduced in 2020 (after 31 December 2019). You are not yet receiving our digital newsletter? You can find here how you can register for it.
Do you want to know more about the chances of a reduction or our coverage ratios?
You will find the answers to the most frequently asked questions about the chances of a reduction here (in Dutch only). More information on the coverage ratios and their development in the past year can be found here.