NETHERLANDS – Progress, the €5bn pension fund of food giant Unilever, reported a nominal funding of 133% at year-end, equating with a real coverage of 99.8%.

It said its nominal funding had risen by 9 percentage points last year.

As a result, it said would grant a full indexation of 2.25% for employees and almost 2% for pensioners and deferred participants.

Elsewhere, the €7bn pension fund for KLM pilots saw its coverage ratio rise to 126.9% on the back of a quarterly return of 2.4%.

The performance of its investments during the last quarter resulted in a year-to-date profit of 13%, it said.

As its legally required financial buffers equate with a funding of 116.5%, the Pensioenfonds Vliegend Personeel KLM said it would grant full indexation of 1.7% for all its participants.

At the same time, its €6.3bn sister scheme for ground staff reported a 3% quarterly return, leading to a funding increase of 2.9 percentage points to 116.6%.

The Algemeen Pensioenfonds KLM said its year-to-date return was 14.8%, with equity, fixed income and property returning 14%, 16.3% and 15%, respectively.

It added that its 45-55% interest hedge on its liabilities contributed 1.7 percentage points to its yearly result.

As the scheme’s current funding is 0.3 percentage points short of its legally required coverage, it announced a partial indexation of 1% for pensioners and deferred members only.