Active participants in pension funds which could not satisfy the minimum coverage ratio of 105 percent by the end of 2009 had build up higher claims than participants in pension funds with a sufficient coverage ratio.
Higher pension claims
The first group is expected to receive 27,300 euro annually after retirement versus 21,700 euro for active participants in pension funds with a coverage ratio exceeding 105 percent.
Higher labour-related pensions
In the category labour-related pensions, claims vary considerably. The build-up for the government old age pension (AOW) is approximately the same for both categories. The labour-related component for active participants in pension funds with a coverage ratio below 105 percent is 65 percent of their total pension claim, as against 56 percent for active participants in other pension funds.
Higher share men
The gender composition of the participants mainly accounts for the differences in pension claims between the two groups of pension funds; 39 percent of participants in pension funds not satisfying the coverage ratio were women versus 49 percent in pension funds, which complied with the minimum coverage ratio.
Participants pension funds
More pension years
Women more often work on a part-time basis and in the long run this is reflected in the fact that they build up a lower number of pension years. The number of pension years for active participants in pension funds meeting the coverage ratio was 10 versus 14.6 for ill-performing pension funds with a minimum coverage ratio below 105 percent.
In general, men also have higher incomes than women. This is one of the reasons that the average income of active participants in pension funds with a coverage ratio below 105 percent is 36 thousand euro, i.e. more than 8 thousand euro higher than the average income of active participants in pension funds satisfying the coverage ratio.