On March 23, the Mars Pension Fund Board redefined the recovery plan for 2021. Every year we update this plan, based on the latest financial results. Good news: in the updated plan, we expect the policy coverage ratio to be back at or above the required equity (VEV) by the end of next year (2022).

What is a recovery plan?

A recovery plan is a financial plan of action for pension funds. As mentioned, we had to draw up a recovery plan last year because our policy coverage ratio was below the required capital (VEV). This means that we actually have too little money in cash for the long term. The fact that we have to draw up a recovery plan is laid down in the Pensions Act.

Why a recovery plan?

Because our policy funding ratio was below the required capital in March last year, we had to submit a recovery plan to De Nederlandsche Bank (DNB). That recovery plan must be updated annually to reflect current results. So at the board meeting of March 23, 2021, the board discussed the new recovery plan and gave its approval to submit the current recovery plan. Fortunately, we expect the policy coverage ratio to rise above the required capital by the end of 2022.