The funding level is an important yardstick for judging the pension fund’s financial situation. It indicates to what extent the pension assets are high enough to meet all future pension obligations (including, in particular, the pension benefit payments).

We're happy to explain how the funding level in 2024 is calculated.

Download Funding Ratio Calculation (PDF)

Besides the funding level, a pension fund must calculate the “policy funding level,” being the average of the last twelve months of monthly funding levels. The policy funding level can be used to determine whether a pension fund needs to curtail accrued pensions and pensions that have commenced payment. 

The policy funding level can also be used to determine whether a pension fund is in a deficit situation, in which case the pension fund would be required to submit a recovery plan to the Dutch central bank, DNB (De Nederlandsche Bank). The recovery plan outlines how a pension fund aims to achieve a higher funding level in the coming years. The policy funding level plays a decisive role in the fund’s decision on whether to index.

In 2024 and based on the indexation policy, the Board decided to award indexation as of 1 January 2025 to active members and pensioners, as well as deferred members, based on the fund’s financial situation as of end 2024. The fund is awarding indexation of 39.3% of the maximum benchmark. For active members, this means indexation of 1.65%, with indexation for deferred members and pensioners being 1.01%.

SPF tries to increase pensioners’ and deferred members’ pensions annually in order to bring these in line with price increases. We also aim to increase active members’ pensions to bring these in line with wage increases. This is SPF’s ambition and is called indexation. However, we can only index if our financial situation is strong enough.

Please consult SPF’s website for more information about pension increases and decreases.