The €48bn pension fund PMT will still have to cut pension rights by 0.4% on 1 May, following pressure from the Dutch regulator De Nederlandsche Bank (DNB). 

The DNB disagreed with PMT’s reasoning that the limited funding shortfall at year-end did not justify a corresponding cut in pension rights.

The metal scheme initially argued that a second discount – after a 6.3% cut last year – was not in the interest of its participants or pensioners.

In its opinion, other measures – such as leaving its contributions at the same level while decreasing the annual pensions accrual – would have improved its coverage ratio sufficiently.

PMT said it would reverse the second discount as soon as its financial position allowed it.

At year-end, the metal scheme’s funding was 103.8%, whereas the required minimum coverage was 104.2%.

The PMT board based its initial decision to refrain from a rights discount on the pension fund’s coverage of 104.4% at the end of January.