The funding ratio of a pension fund is the ratio of the assets of the pension fund (the capital) to the commitments (the pensions to be paid). The funding ratio indicates whether the pension fund has sufficient funds to pay the pensions now and in the future.

The policy funding ratio is the average of the current funding ratios of the past twelve months. The policy funding ratio of January is 113,2%, which is higher than at the end of December. The current funding ratio increased from 118,3% to 119,3%. 

Repair plan

If the policy funding ratio falls below the technical provisions Mars Pensioenfonds must submit a repair plan to De Nederlandsche Bank (DNB). As of March 2020, that is the case for Mars Pensioenfonds. In the repair plan we explain how we will meet the required technical provisions based on the policy funding ratio in a maximum of 10 years.

What is the reason for the decrease in the current funding ratio?

The funding ratio increased because of a higher interest rate. 

Development of the funding ratios

The graph below shows the development of the current funding ratio (blue line) and the policy funding ratio (red line). The development of the funding ratio depends predominantly on the return on investment and the development of the interest rate used to calculate the level of the pension commitments.