Dutch pension fund funding ratio falls to 124.7 percent
The funding ratio of Dutch pension funds still subject to the Financial Assessment Framework (FTK) fell to 124.7 percent in the first quarter of 2026. This represents a decrease of 4.4 percentage points compared with the previous quarter.
One-third of pension funds converted
Dutch pension funds have until January 1, 2028, to transition their accrued pension entitlements to the new system.
As of March 31, 2026, 30 pension funds had successfully converted.
The total assets under management for Dutch pension funds reached €1.624 billion on this date.
Of this, €1.082 billion belongs to funds still operating under the Financial Assessment Framework (FTK), while €542 billion is managed by funds that have already adopted the new Future of Pensions Act (Wtp).
This indicates a significant portion of the sector is actively moving towards the new regulatory landscape, with approximately one-third of the total assets now under the new framework.
The conversion process is a complex undertaking, requiring careful management of entitlements and investment strategies to ensure a smooth shift for millions of participants.
Equity prices weigh on funding ratios
The decline in the FTK funds' funding ratio to 124.7 percent in Q1 2026 was primarily driven by a negative trend in equity prices.
This ratio, which expresses the relationship between investments and liabilities, decreased by 4.4 percentage points from the previous quarter.
In contrast, the policy funding ratio, calculated as the average over the past twelve months, showed an increase of 2.1 percentage points, reaching 125.0 percent from 122.9 percent.
Changes in the composition of funds included in the calculation had a negligible impact on sector-level ratios, as converted and unconverted funds had similar funding ratios at the time of conversion.
Transition progress meets market headwinds
The conversion of 30 pension funds by Q1 2026 shows tangible progress towards the 2028 deadline.
However, the decline in FTK funding ratios, driven by equity market trends, highlights persistent financial vulnerabilities for unconverted funds.
This dual development means DNB must balance structural change with vigilant oversight of market-sensitive pension assets.