EINDHOVEN – The Nederlandsche Bank has approved the recovery plan for the Philips Pension Fund. This was announced in the fund’s quarterly report.
The fund’s current coverage of 103 percent for retired Philips employees is too low. Philips Pension Fund hopes to regain a coverage of 104 percent within three years. Thereby the first hole in the buffer that the pensionfund is required to create has been closed.The level of 104 percent is the minimal coverage required by the Nederlandsche Bank. The actual required coverage is 108 percent. The management of the pension fund expects to be back at that level within 15 years. Recovery plans have been created both for the short and the long term.The management says that the quarterly report will contain information as to what must happen in order for the pension fund to be in safe waters once more.ED