Funding ratio < 100%: value transfers temporarily on hold
Do you have a new job with another employer? Or have you been employed recently by AkzoNobel or Nouryon? In these cases you can, as of June, not immediately take the pension that you have accrued with you to your new pension fund or insurance company, or bring the pension that you have accrued elsewhere with you to our pension fund. As of then value transfer, as this is referred to, is only allowed when the policy funding ratio is 100% or higher. At the end of May our ratio was 99.1%. You can still submit a request for value transfer, but we will not process your request until our policy funding ratio is 100% or higher again.
The main cause of the drop in the policy funding ratio is the low interest rate. The lower this rate, the more funds we need to have available to be able to comply with our obligations. The interest rate is out of our influence.
How does this work?
According to the Dutch law a pension fund must have more funds available than what it is obliged to pay out in pension benefits, now and in the future. Every pension fund must therefore have enough reserves for bad times. Since we have been dealing with a low interest rate for a longer period of time, our reserves have gradually diminished. That is not the idea, which is why we are legally allowed to put a hold on value transfers when the interest rate is less than 100%.
Is your annual pension less than € 497.27 (in 2020)?
A pension of € 497.27 per year, also referred to as small pensions, may still be transferred. No action is required from you, we will arrange the value transfer automatically for you. To find out more about the funding ratio, go to Financial situation