PVK sees signs of recovery in fund finances
The PVK regulator has presented a report on the pension fund sector in 2003. According to the report, the sector has recovered partly from the financial problems of 2000-2003.
After three years of negative results, the 2003 financial year had a positive result of E11bn euros.
The PVK stated that the Dutch pension sector has seen a general change from final-salary to career-average arrangements – caused by a general decline in the financial strength of pension funds during 2000-2002.
The average coverage ratio declined from 150% in 1999 to 108% in 2002. In 2003, this has changed dramatically.
During 2003, the pension fund sector had profit on equities of E26 bn – compared with a shortfall of E58bn in 2002.