The funding level and the policy funding level are published around the 10th working day of each month.
Funding level on July 31, 2024: 121.1%
Policy funding level on July 31, 2024: 121.9%
The policy funding level is used to make decisions on indexation. The policy funding level is the average of the last twelve months of funding levels.
Click here for more information about the monthly development of the funding level.
Funding level evolution
The pension fund’s funding level decreased by 0.2 percentage points to 121.7% at the end of June. During June, share markets achieved a positive return and interest rates fell, which had a positive effect on the funding level due to the fact that the pension fund hedges part of the interest rate risk. On balance, the funding level result was negative.
In early June, the ECB cut official interest rates by 25 basis points. Although eurozone inflation is still above the 2% inflation target, the ECB has already started cutting policy rates, as inflation figures continue to decrease. Recent data suggest a slow recovery in the eurozone economy. European manufacturing presents a gloomy picture, mainly due to a sharp fall in demand from export markets, including China. Inflation is also easing in the United States and the US central bank is expected to cut policy rates in September. Although the US economy has remained strong compared to the eurozone economy, several indicators, such as consumer confidence, are pointing to a decline. The labour market has also come under pressure, which has increased the unemployment rate.
The Board will continue to monitor developments closely.
| Position at the end | Q1 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 |
| Funding level | 119.1% | 117.4% | 120.0% | 117.3% | 103.3% | 107.6% | 107.9% |
| Policy funding level | 122.7% | 123.5% | 125.0% | 111.9% | 98.4% | 105.7% | 113.3% |
| Acturial interest rate | 2.4% | 2.3% | 2.6% | 0.6% | 0.2% | 0.7% | 1.4% |
| Annual return | 1.7% | 9.4% | -19.5% | 6.8% | 6.5% | 16.9% | -2.8% |
The variable net pension benefit is adjusted annually at the beginning of the year on the basis of the result achieved in the previous year. This result includes the return on investments, the development of market interest rates, and the result on death within the group of pensioners who have a variable net pension benefit.
| As the end of | 2023 | 2022 | 2021 | 2020 |
| Funding level | 99.93% | 103.96% | 111.27% | 104.67% |
| Result | -0.07% | +3.96% | +11.27% | +4.67% |
| Average interest rate | 2.50% | 2.90% | 0.45% | 0.00% |
| Return | 8.94% | -23.22% | 3.15% | 8.14% |
The total result achieved for the group in 2023 is -0.07%. Despite the positive return on investments over 2023, this (small) negative result is largely due to the decrease in interest rates in 2023. As a result, SPF needs to reserve more money to pay future variable net pension benefits.
SPF divides the result achieved over five years. As a result, the reduction of the variable net pension benefit over 2024 to 2028 inclusive is equal to 0.02% per year.
For more information, please see the brochure 'Indexation’.