Also known as market value funding ratio. This is a measure that indicates the extent to which a pension fund is able to meet its future obligations, based on the current market value of assets and liabilities. The current funding ratio is calculated based on the interest rate term structure (RTS), which is published periodically by De Nederlandsche Bank (DNB).

A coverage ratio of 100% means that the pension fund has exactly enough resources to meet all its obligations. A lower coverage ratio indicates a shortage, while a higher coverage ratio indicates a surplus. This measure is essential for assessing the financial health of a pension fund and can influence decisions about premiums, indexation, or even cuts to pension benefits.

Similar terms include the economic funding ratio and the policy funding ratio, each of which uses a different methodology or long-term perspective for calculating the funding ratio. To fully understand this term, it is important to know the context of the legal requirements and market conditions in which it is applied.