Recovery plan and financial crisis plan
What is a recovery plan?
A recovery plan is a plan that pension funds are required to make if their financial position is insufficient. This is laid down in the Pensions Act.
A pension fund must make a recovery plan when its coverage ratio is too low. The coverage ratio reflects the fund's financial health. It reflects the relation between:
- the assets held by the fund, and
- the amount needed to cover the cost of all pensions - both now and in the future.
When does PME make a recovery plan?
PME is required to make a recovery plan if our coverage ratio drops below approximately 119%. In the recovery plan we explain how we will restore the coverage ratio within 10 year to the proper level.
What is a financial crisis plan?
The board of PME has compiled a financial crisis plan (pdf, in Dutch) that describes what we must do if we end up or are likely to end up in a financial crisis. The crisis plan describes the measures that can be taken to protect the financial situation.