NETHERLANDS - The coverage ratio for pension fund ABP hit 105% at the end of 2010, surpassing its target for the year.
ABP's coverage ratio increased by 13 percentage points to 107% in the fourth quarter, easily beating the coverage target of 96% set in October, despite dipping to 94% at the end of the third quarter (Global Pensions: 21 October 2010).
Assets also increased by €6.3bn ($8.6bn) with returns of 2.8% during Q3, amounting to returns of €28bn or 13.5% for the whole year. The fund completed the year with €237bn in assets.
APB said it will not reduce pensions or benefits for members, as its liabilities improved to €225bn from €246bn at the end of Q3 due to an interest rate increase. However, pension premium will rise to allow for improvements in life expectancy (Global Pensions: 26 November 2010). This increase, which the ABP Board still needs to determine, will come into effect on 1 April 2011.
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