42 Dutch pension funds have moved to new system as funding ratio rises

Forty-two Dutch pension funds had transferred to the new pension system by 30 September, eight more than at the end of the previous quarter, according to De Nederlandsche Bank (DNB). The remaining funds operating under the old system recorded a higher funding ratio in the third quarter, the regulator said.

Those funds’ funding ratio rose by 4.7 percentage points to 136.1%. DNB attributed the increase partly to rising interest rates and share prices, and partly to a revised life-expectancy projection that reduced expected longevity.

The funding ratio compares a fund’s assets with its pension liabilities. DNB’s figures cover funds that have not yet transferred to the new system; the measure does not provide a single equivalent snapshot of financial position for funds already using the new arrangements.

The policy funding ratio, which averages the monthly ratios over a year, rose by 2.3 percentage points to 130%.

By the end of September, Dutch pension funds managed €1,630bn in total. Of that, €566bn was held by funds that had transferred to the new system, while €1,064bn remained with funds under the old financial assessment framework. Funds have until 1 January 2028 to transfer accrued pension rights.