Financial position
One of the factors used to determine the financial position of Philips Pensioenfonds is its funding ratio. If a pension fund has a funding ratio of 100%, this means that its assets exactly cover its existing pension liabilities. A series of financial rules laid down in the Financial Assessment Framework (Financieel Toetsingskader) have been used to define the following types of funding ratios:
Quarterly report
Every quarter you can read in this report how Philips Pensioenfonds is doing financially.
Quarterly report 2024 Q4 (in Dutch)Current funding ratio
The current funding ratio reflects the value of the pension fund’s assets as a proportion of the pension liabilities (all pensions payable now and in the future).
At 31 December 2024, Philips Pensioenfonds had an actual funding ratio of 122.7%.
Policy funding ratio
Another way of calculating the funding ratio that is less subject to daily fluctuations is the policy funding ratio. The policy funding ratio is calculated by taking the average of the actual funding ratios over the past twelve months. By law, pension funds are required to use their policy funding ratio for deciding on various matters, for example indexation. The policy funding ratio is also used for other purposes, including to establish whether the pension fund’s buffers are sufficient.
At 31 December 2024, Philips Pensioenfonds had a policy funding ratio of 124.0%.
Required funding ratio
The required funding ratio is the minimum policy funding ratio that pension funds are required to have according to the law. If a pension fund’s policy funding ratio is at the same level as the required funding ratio, this means that it has the financial buffer required by law. The purpose of this buffer is to compensate for fluctuations in the value of the pension fund’s investments and liabilities. The required funding ratio varies from one pension fund to the next, and is determined largely by the pension fund’s investment policy: the higher the risks in the investment policy, the higher the required funding ratio.
At 31 December 2024, Philips Pensioenfonds had a required funding ratio of 115.5%.
| Amounts in millions of euros | ||||
| End of Q4 2024 | End of Q3 2024 | End of Q2 2024 | End of Q1 2024 | |
| Pension fund's assets | 18,516 | 18,560 | 17,896 | 18,270 |
| Pension liabilities | 15,097 | 14,960 | 14,293 | 14,816 |
| Current funding ratio | 122.7% | 124.1% | 125.2% | 123.3% |
| Policy funding ratio | 124.0% | 124.9% | 125.7% | 126.1% |
Latest developments
In the fourth quarter of 2024, the current funding ratio fell from 124.1% to 122.7%. The return on the total investment portfolio was slightly positive. This was mainly due to a positive return on the equity portfolio. Equity markets received a boost when it was announced in November that Donald Trump would be the new President of the United States. Due to the higher interest on government bonds, the return on the fixed-income portfolio was negative. Despite the slightly positive return on the total investment portfolio, the coverage ratio fell. This was because pension liabilities increased due to a lower swap rate. A different interest rate than the interest rate that influences the return on government bonds is used to calculate pension liabilities.
Related information
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Indexation policy
We try to increase your pension every year. This is called 'indexation'. But indexation cannot be taken for granted. Do you want to know more about our indexation policy?
Go to Indexation policy
Funding ratio
This graph gives you an idea of the financial health of Philips Pensioenfonds.
Go to graph