What is a financial crisis situation?
Various situations are also feasible which may be referred to as a crisis. The Board of the Pension Fund decides whether or not a crisis has occurred. If the funding ratio of the Pension Fund is too low, a financial crisis situation has occurred:
- if the funding ratio drops below the statutory minimum level of 105%
- if the funding ratio drops below the statutory level required for SSPF (124%), and the calculations reveal that no timely recovery of the funding ratio may be realised under the present funding policy, indexation policy and investment policy. In other words: if the funding ratio drops below 124% and there is no prospect of a timely recovery of the funding ratio
The Pension Fund may take different measures if it finds itself in a financial crisis situation or is at risk of finding itself in such a situation.
Such measures may include: adjustment of the investments, limitation of certain risks (for example: interest or exchange-rate fluctuations), increase of the pension contribution or (partial) waiving of conditional indexation.
Depending on the situation, the Board will determine which measures are the most appropriate. In doing so, the Board will also consider the consequences of the various measures for all stakeholders: active participants, pension beneficiaries, former participants and the employing company.
The Pension Fund publishes regular communications regarding the financial position. The funding ratio is published on the website on a monthly basis, it publishes newsletters and an abridged annual report is published every year.
- If a financial crisis situation occurs
If a crisis situation occurs, the Pension Fund notifies all participants, pension beneficiaries and former participants about this as soon as possible. It does this by publishing an item on the website containing a brief explanation of what has happened.
- If the financial crisis situation persists
More extensive communications will be made available if the crisis persists or deepens. These may contain more information about possible measures and the potential consequences thereof for participants, pension beneficiaries and former participants.
In addition to regular news items on the website, information may also be provided in other ways. For example by means of questions and answers on the website, or in a (special) newsletter. It is also possible to communicate via webcasts or by letter in extreme situations.
The Board will determine which means of communication are to be used depending on the specific circumstances of the crisis situation.
If a crisis situation impacts the personal pension situation of the participants, pension beneficiaries and former participants and it is clear what the consequences will be, they will receive personal notification of this.
- At the end of the financial crisis situation
The Pension Fund will notify all stakeholders when the Board decides that the crisis situation has ended. It will do so by means of a news item on the website. If any implemented measures are cancelled and this impacts the personal pension situation of the participants, pension beneficiaries and former participants, they will receive personal notification of this.