Funding ratio

The Board of Directors bases its decisions on issues such as indexation or the amount of the pension contribution on the funding ratio. The funding ratio is a key indicator of the financial position of the section, indicating the ratio between the available assets and the future pension liabilities.

The funding ratio of the section Genencor Netherlands was 109% as at 31 December 2019 (audited). For the Dutch sections of DEPF, the valuation of the pension obligations takes into account the interest that is applied to individual value transfers. The revaluation of the pension obligations at the end of 2019, based on the low interest rate, had a major negative impact on the financial position. Despite the good investment results, the funding ratio nevertheless declined on balance during 2019.

Due to negative investment results in connection with the Covid-19 pandemic, the funding ratio fell further below 100% in the first quarter of 2020.

Ultimo Funding ratio
2016 116%
2017 128%
2018 114%
2019 109%
2020 Q1 (unaudited) 94%