Dutch pension funds are in a better financial position but not all of them can guarantee they won’t have to make cuts in payouts next year, according to figures released on Thursday.

Only building sector pension bpfBouw can say with certainty pensions won’t have to be cut next year. It has increased its coverage ratio to nearly 110%, well over the legal minimum of 105%.

Civil service pension fund ABP, one of the biggest funds in the world, has increased its coverage ratio to 103.%, well up on the 97.1% in the second quarter. But the danger of cuts has still not been removed, chairman Henk Brouwer warned on BNR radio.

Health service pension fund Zorg & Welzijn has risen to 107%, compared with 101% in the second quarter.

Higher interest rates and an increase in investment returns are behind the improved performance. The fourth quarter position of the funds is crucial in deciding if cuts have to be made.