Corona crisis: impact on the APF Pension Fund increases
Last week we indicated that the funding ratio of the APF Pension Fund has decreased considerably due to the financial consequences of the corona virus outbreak. Since then the World Health Organization labeled this a pandemic. Most European countries have taken drastic measures to contain the spread of the virus.
This has large economic consequences, which have led to a further deterioration on financial markets. The government announced measures and it is to be expected that this exceptional situation may continue for a couple of months. It will take great solidarity to overcome this crisis.
The APF Pension Fund also goes through a difficult and very challenging period. Over the past few weeks our funding ratio further decreased to slightly above the critical funding ratio for our pension fund, being 90%. Pension funds ending up below that limit are no longer likely to recover to the desired level within 10 years without extra measures and thus become future-proof.
The Board does its utmost to protect the interests of all our participants as well as possible. Together with our consultants and specialists we closely monitor the situation. We pursue a consistent long term investment policy, enabling us to overcome the big challenges we are now facing. At this moment we cannot predict how long this will take. We have sufficient liquidity, so pensioners need not worry about their pension payments.
A great number of offices are closed and many staff do not work from their normal place of work. In view of this, together with the parties to which we outsource operational activities, have taken action to ensure continuation of critical business processes.
We do not know whether participants of the APF Pension Fund have been affected by the virus. Should this be the case, we wish them and their loved ones strength and hope they will get well soon.
Of course we will keep you informed of new developments on a regular basis.
Board of APF Pension Fund
More about funding ratio