Recovery plan summary

Due to the low policy coverage ratio, the HPF has submitted a recovery plan on 31 December 2020. Below you will find a summary of the most recent recovery plan.

If, on grounds of the policy funding ratio at the close of the year, a pension fund fails to meet the Statutory Funding Requirement (VEV) then a pension fund must submit a recovery plan to De Nederlandsche Bank (DNB) within a period of three months. The VEV required for the HPF on 31 December 2020 was 123.1%.

The policy funding ratio of the HPF on 31 December 2020 was 94.9%. Hence the HPF submitted a recovery plan to DNB. How the HPF will comply with the VEV within 10 years is set out in that recovery plan.

Below is a clarification of the consequences of the recovery plan at the present time.

We expected that we will not be able to increase your pension in the coming years. We expect to be able to partially increase your pension within a few years, but that mainly depends on the development of the interest rate and the result on our investments. After several years, it is expected that there will be a possibility of a full increase.

For the time being there is no need to cut back pensions in order to meet the VEV within the recovery period. Because of the low rate of interest it remains uncertain how the financial situation of the HPF will develop over the coming year(s).

The Board is doing everything within its power to keep the period in which pensions do not increase in line with price movements as short as possible.