What is our financial position?
The policy funding ratio is the average funding ratio during the last 12 months. At the end of March 2024 it was 144.2%. The funding ratio is the ratio between the assets and the liabilities. The funding ratio was 141,3% at the end of March 2024.
Read moreWhat does this mean for your pension?
Mars Pension Fund takes the decision about the indexation in November of each year. The decision is based on the Price Index and the policy funding ratio of September in that specific year. In September 2022, the policy funding ratio was 145,8%, which is higher than required funding ratio (approx. 123%) and the indexation threshold. Based on this financial position and the indexation policy, Mars Pension fund is able to grant full indexation.
Please note: This is the indexation of January 1st 2023. The indexation of Januari 1st 2024 will be announced soon.
Read moreFunding 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.
Frequently asked questions
With a policy coverage ratio of around 123%, we have sufficient financial buffers to allow pensions to grow fully in line with 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.
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.