Tax, Benefits & Cost of LivingBusiness & Finance
Improved funding ratios at ABP and PME before pension-system transition
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ABP and PME reported stronger financial positions in the third quarter as higher interest rates reduced the value of their pension liabilities, despite negative investment returns. ABP's funding ratio rose from 126.9% to 132.2%, while PME's increased from 127.7% to 132.8%.
Both funds are due to move to the new pension system on 1 January. Their funding ratios at 31 December will determine how much surplus capital can be allocated to participants. PME said that, if economic conditions and interest rates do not change substantially, its members can expect an average pension increase of 12.6% in 2027.