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
October 2022 152.1%
September 2022 149,4%
August 2022 144,6%
July 2022 133.5%
June 2022 145.5%
May 2022 143.0%
April 2022 140.5%
March 2022 131.2%
February 2022 121.5%
January 2022 117.4%
December 2021 119.2%
November 2021 113.3%
Policy funding ratio (average 12 months) 134.3%

The pension commitments decrease when interest rates increase. With a higher interest rate, you have to reserve less capital in order to be able to meet the pension obligations in the future. This can also be seen in the higher funding ratio.