The current funding ratio denotes the ratio between a pension fund’s commitments and assets at a given time. A current funding ratio of 100% implies that a pension fund has exactly enough assets to meet its commitments.
The policy funding ratio is the average of the current funding ratios over the past 12 months. The HPF must use the policy funding ratio for the decision to adjust pensions. The policy funding ratio determines whether we can raise the pensions with the rise of the consumer prices (indexation) or need to reduce them (cutback).
The current funding ratio looked like this in the 12 months to the end of September 2020:
| Oct-19 | Nov-19 | Dec-19 | Jan-20 | Feb-20 | Mar-20 | Apr-20 | May-20 | Jun-20 | Jul-20 | Aug-20 | Sep-20 |
| 102,6 | 104,7 | 107,3 | 102,6 | 96,3 | 91 | 91,6 | 92,6 | 92,8 | 91,6 | 94,3 | 94,5 |
The average of these was 96.8%. As you can see, the funding ratio can vary a lot from month to month. Pension funds use the policy funding ratio when making important decisions to avoid being dependent on coincidental circumstances.
An indexation may only be given if the policy funding ratio is at least 110%. If the policy funding ratio is between this lower limit of 110% and the upper limit of approx. 125%, indexation can only partially be granted. If the policy funding ratio is higher or equal to this upper limit, full indexation can take place. We expect that we will be able to partially increase your pension in the coming years. This mainly depends on the development of the interest rate and the stock market.
The Heineken Pension Fund has three different bodies. We can imagine that you have questions about the tasks of these bodies and how your interests are represented by these bodies. In this blog we give you more information about this.
The first half of 2023 is over and the summer period is just around the corner. Before your well-deserved holiday starts, we would like to bring our Annual Overview 2022 to your attention. In the annual overview 2022 you will find the most important facts and figures of us, the Heineken Pension Fund, from last year. Worth a look!
The Accountability Council consists of representatives of employees, employer and pensioners. There are currently vacancies in the Accountability Body. If you want to know more about this, read our blog.
