Last month the policy funding ratio of Philips Pensioenfonds fell from 117.8% at the end of May to 117.3% at the end of June. The policy funding ratio has been below the required funding ratio (118.74%) since the end of March. The required funding ratio represents the minimum amount that Philips Pensioenfonds is required by law to have in reserve. As the policy funding ratio falls short of the required funding ratio, Philips Pensioenfonds has had a deficit since the end of March, and it submitted a recovery plan to the supervisory authority, which is the Dutch central bank. At a later moment, we will also publish that plan on our website. We expect that the funding ratio will recover based on our existing policies, and that no additional measures will be required.
The graph shows the monthly movements in the actual funding ratio and the policy funding ratio. It also shows how your pension is impacted if the policy funding ratio is at a particular level.