Financial position

Dekkingsgraad + leg okt22 EN

What is our financial position

The policy funding ratio is the average funding ratio during the last 12 months. At the end of October 2022 it was 148.1%. The funding ratio is the ratio between the assets and the liabilities. The funding ratio was 162.2% at the end of October 2022.

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What does this mean for your pension?

Mars Pension fund needs to take the decision for indexations in November of each year. The decision is based on the Wage Index and the policy funding ratio of September in that specific year. In September, the policy funding ratio was 125.2%, which is higher than the solvency margin ratio. Based on this financial position and the indexation policy, Mars Pension fund is able to grant full indexation. 

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Funding ratio

The coverage ratio shows the relationship between how much assets we have and the pension liabilities. The assets consist of the premiums we receive and the return we make on our investments. The liabilities are the pensions we have to pay now and in the future. The level of the liabilities depends, among other things, on the interest rate and life expectancy.

Overview funding ratio

Frequently asked questions

  • With a policy coverage ratio of around 122%, we have sufficient financial buffers to allow pensions to grow fully in line with wage/price increases (indexation).

     

  • The amount of your pension may still change. For example, by increasing it (indexation) or decreasing it (reduction). Whether your pension is increased or decreased depends on the financial position of the pension fund. If the financial situation does not meet the requirements for a longer period of time, the chance of indexation becomes small and the chance of reductions larger. You can find more information here.

  • In the calculations in the recovery plan, assumptions are made. For example, the development of the interest rate and the returns. In the course of the year, actual developments may differ from these assumptions. That is why the fund must draw up an updated recovery plan each year.

  • A pension fund must have buffers, because the future is uncertain. In this way, we ensure that we can pay out pensions to everyone even in the event of financial setbacks.

     

  • Click here to learn more about your pension fund's financial position.