The coverage ratio indicates how healthy our pension fund is. On the one hand, we have obligations: these refer to the amount we pay out every month to pensions and the amount we set aside for future pension payments. We calculate the amount of our obligations on the basis of interest, which varies every month. On the other hand, we have assets: these are our investments, which also differ every month due to developments in the investment market.
The ratio between the amount of interest and the investment yield
Generally, the coverage rate increases as our assets increase and obligations decrease. This happens if investments are performing well and the interest rates are high. But it can also occur if interest rates are very high but investments are down, as in that case, obligations decrease more than the capital increases.
How our coverage rate changes
You can read how the coverage rate changes every month in the news section of our website. Visit the page ‘Onze financiële positie’ (Our financial position) on our website.