Looking ahead to 2020

Financial position

In the first months of 2020, the funding level declined, mainly due to Covid-19.


Covid-19 & financial markets

The outbreak of Covid-19 and the resulting measures taken by governments all over the world to curb the spread of the virus have already had a significant effect on PDN’s activities in the first quarter of 2020.In the first quarter of 2020, the funding level fell sharply from 104.0% at the end of 2019 to 91.2% in Q1 2020. Whether the funding level will improve in 2020 depends on how government measures in response to COVID-19 evolve.

Financial markets plummeted in March 2020, with negative returns on shares and alternative investments. The reasons for this were twofold. On the one hand, a pandemic broke out that prompted governments to take drastic measures to halt the spread of COVID-19. On the other hand, oil prices plunged following a drop in demand from China. The subsequent escalation of a creeping production conflict between Saudi Arabia and Russia then led to major movements on financial markets. Governments in Europe and the US responded with support measures for citizens and businesses on an unprecedented scale. Central banks in Europe and the US have taken measures to provide maximum support to the economy, but little can yet be said about how long the current situation will last and what impact developments and measures taken to support economic growth and financial markets will have. PDN will continue to monitor developments closely.


Pension agreement

A national pension agreement was reached in 2019. This agreement is currently being fleshed out by a steering committee consisting of various working groups. The detailed version of the Pension Agreement is expected to be completed in 2020. The Board will devote special attention to this Agreement in 2020 and proactively prepare for all matters relevant to the fund. 


New Pension Agreement and Administration Agreement 2021

The current Pension and Administration Agreement is set to expire at the end of 2020. PDN has already started preparing for a new Pension and Administration Agreement, which will enter into force on January 1, 2021. The connection agreements with affiliated companies will also be renewed on this date. The new Pension and Administration Agreement will remain in force until new legislation is adopted as a result of the Pension Agreement. Two key issues in this interim period are contributions and pension accrual in the context of today’s low interest rates.


New member portal

The new member portal is expected to go live in the first half of 2020. Further optimizations are scheduled for Q3 and Q4.