Policy ratios

Funding ratios
The funding ratio reflects the pension fund’s financial situation. It is the ratio between the fund’s assets and the pension commitments. A funding ratio of 100% implies that the assets are at the same level as the pension commitments. The higher the funding ratio, the healthier the fund.

When calculating the funding ratio, Heineken’s subordinated loan is valued at the market value and indicated as equity capital up to a maximum of 50% of the total equity capital or the minimum equity capital, whichever is the lowest.

The current funding ratio
The current funding ratio denotes the ratio between the HPF’s commitments and assets at a given time.

The policy funding ratio
The policy funding ratio is based on the average funding ratio over the past 12 months.

Pension commitments
The pension commitments are determined by the Board at the close of each calendar year and published in the Annual Report. The pension commitments are estimated throughout the year.

The current funding ratio over the last 12 months

Month Funding ratio
May 2022 143.0%
April 2022 140.5%
March 2022 131.0%
February 2022 121.5%
January 2022 117.3%
December 2021 119.2%
November 2021 113.3%
October 2021 114.4%
September 2021 113.8%
August 2021 110.9%
July 2021 108.9%
June 2021 111.1%
Policy funding ratio (average 12 months) 120.4%

The interest also has a negative effect on the value of the pension commitments. The pension commitments increase when interest rates fall. With a lower interest rate, you have to reserve more capital in order to be able to meet the pension obligations in the future. This can also be seen in the low (policy) funding ratio. Because the pension capital has decreased and the pension commitments have increased, this mutual relationship is different, resulting in a low (policy) funding ratio.