Currently, the coronavirus is the subject of many news updates. The Board is closely monitoring ongoing developments. DPS, our administering organization, has implemented precautionary measures. For example, people are self-isolating and working from home to limit the risk of spreading the virus and to ensure that pensions continue to be administered and paid out.
What does this mean for my pension and the surviving dependent's pension?
Currently, coronavirus is not affecting the payment of pensions or accrued pensions, or the right to partner and orphans' pension. Supplementary measures may be required in the event that the funding level remains too low for too long. These measures could include, for example, a longer period without indexation or, in the most extreme case, reducing pensions.
To what degree does news concerning coronavirus affect SPF?
The news concerning coronavirus is having consequences for the financial markets. This is affecting the stocks that comprise SPF’s investments. Therefore, the funding level is subject to a negative effect that the Board is closely monitoring. The policy for issues including indexation is aligned to the policy funding level, the average funding level of the last twelve months. The news on coronavirus has a delayed influence on the policy funding level that first becomes apparent after some time and only when the effect is of a longer-term nature.
Ultimately, this will be determined by the situation on December 31. This means that it is not currently possible to indicate the consequences coronavirus will have for our members, which are dependent on factors including the movements in the funding level during the coming months and any support measures implemented by the government. However, we do know that an absence of an improvement in the economic situation during the year will give rise to a low risk of cuts.
To see the effect on the funding level, navigate to our website and click on ‘Funding Level and other financial figures.’
How is SPF responding?
SPF's Board is doing everything in its power to limit the effects. The strategic policy remains focused on the long term, meaning that the chosen investments are selected to best account for potential ‘stress situations’ in financial markets. The pension fund spreads the investment risks over a number of investment categories. We continue to hold frequent discussions on this with our advisors at DPS.