Stichting Pensioenfonds ABP, Heerlen, Netherlands, saw its liabilities increase 3.8% to €518 billion ($570 billion) in February due to coronavirus-induced stock market turmoil, the pension fund said on its website Monday.
The pension fund's assets fell by 2.3% or €11 billion in February to €459 billion. The plan for Dutch civil servants saw its funding ratio decline to 88.6% at the end of February from 94.1% at the end of January due the stock market's reaction to the impact of the coronavirus and existing trade conflicts, according to ABP's website.
Market developments in the next 10 months will affect the ratio and could determine benefit cuts after the end of the year, ABP said.
"February was a disappointing month for ABP's financial position," the pension fund said on its website. The funding level as of Dec. 31, 2020, will determine whether pension benefits should be cut, ABP said.