The policy funding ratio is the financial indicator of a pension fund. If the funding ratio is 100%, for every euro that we have to pay in pension now or in the future (the liabilities), we also have exactly one euro in cash.
The policy funding ratio for the entire pension fund
To give you a good idea of the financial situation of the pension fund, StiPP publishes the policy funding ratio for the pension fund as a whole. StiPP therefore calculates the policy funding ratio on the total assets of the pension fund. Thus, both the provisions for risk of the fund and the provisions for risk of the participants are included. At the end of June 2023, this funding ratio was 112.3% (at the end of March it was 112.4%).
The policy funding ratio is the average of the current funding ratio of the last twelve months. By using an average, the funding ratio fluctuates less strongly. Pension funds must use the policy funding ratio when making pension policy.