ABP Coverage Ratio Falls
23 May 2012 (PLANSPONSOREurope.com) - Dutch pension fund ABP has seen its coverage ratio fall to 94%.
The fund has announced that pensions have not been increased by the average wage, while pension from 1 April 2013 face being cut.
Chairman Henk Brouwer said: "In 2011, ABP has a positive return in uncertain financial markets. We also managed to reduce our operating costs. Unfortunately, these positive developments are overshadowed by the deterioration of our financial position in the 2nd half of the year. Because the falling interest rates had a very serious negative impact on the coverage. We have the pension entitlements of active members and pensioners can not increase the average wage. In particular pensioners suffer the consequences of this immediately. In addition, we had to warn of a possible reduction in the pension and the temporary surcharge on the premium increased. I find that very unfortunate. I understand that members and pensioners will feel disappointed. Whether the announced reduction in the pension continues depends on the financial position at the end of this year.. "