NETHERLANDS – The €1.1bn occupational pension fund for notaries (SNPF) in the Netherlands has announced an additional pension rights cut of at least 5.8%.

In a letter to participants, the scheme explained that contribution increases and investment returns had failed to lift its coverage ratio sufficiently within the allocated recovery period.

The scheme's funding increased to 91.6% at the end of September after the introduction of the 'ultimate forward rate' as the new discount criterion for its liabilities.

However, the most recent longevity figures are likely to reduce the ratio by approximately 1 percentage point, according to Gijs Alferink, the scheme's chairman.

The SNPF's funding must be at least 104.3% by 1 April 2013. The scheme already applied a rights discount of almost 2% in January 2011 with the view to hitting that target.

Alferink stressed that the additional cut of 5.8% was a minimum, and that the final discount would depend on developments in the financial markets in the coming months.

The board will take a decision on the exact rights cut in early 2013, he said.

Earlier this year, the SNPF indicated that it would consider how and even whether to continue as an independent scheme as part of a wider policy review.

The scheme has 6,470 participants in total, with 3,220 active participants and 1,520 deferred members.

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