Amsterdam- The association for Dutch pension funds VB asked the Dutch central bank DNB on Thursday to give its members more time to restore their coverage ratio levels.

A pension fund's coverage ratio level indicates to what extent it can meet its future financial obligations.

Speaking on Dutch television, Gerard Rieman, director of the association of Dutch pension funds VB said "DNB should, if necessary, give pension funds four and a half in stead of three years to restore their coverage ratio level."

According to Dutch central bank DNB regulations, pension funds whose coverage ratio levels have dropped below the required minimum of 105 per cent, are obligated to file a plan to DNB indicating how they will restore their solvency within three years.

VB represents 77 of the 413 pension funds in the Netherlands supervised by the Dutch central bank DNB.

Earlier on Thursday one of the world's largest pension funds, the ABP fund for Dutch civil servants and teachers, said its coverage ratio level had dropped to 90 per cent by late 2008.

ABP's capital dropped by 22 billion euros (29.8 billion dollars) in 2008 to a year-end level of 173 billion euros.

In total, the fund lost 11.5 per cent of its value last year. Health care and social welfare pension fund Zorg en Welzijn also saw continued drops in its coverage ratio level, from 126 per cent late 2007 to 92 per cent one year later.

"The global recession and the low interest rates affected our fourth quarter results," said Zorg en Welzijn director Peter Bordorff following the publication of the fourth quarter results.

He added Zorg en Welzijn would not adjust its pension payments for 2009 and 2010 to the Consumer Price Index (CPI).

The pension funds for the metal industry PME and for metal and technology PMT which released their Q4 results on Thursday as well, also announced they would not adjust their pension payments to the CPI.

PME's coverage ratio level dropped from 135 per cent in late-2007 to 90 per cent in the final quarter of 2008.

Substantial losses in its stock investments led to a negative 2008 result (down 17.8 per cent).

The pension fund shrunk from 22.4 billion euros late 2007 to 18.7 billion euros late 2008.

Pension payment obligations in the same period however increased from 16.3 to 20.6 billion euros.

Metal and technology pension fund PMT said its coverage ratio level dropped from 141 per cent (late 2007) to 87 per cent (late 2008).

PMT lost 20.6 per cent of its capital in 2008, its stock portfolio alone dropping 43.1 per cent.

According to DNB, the average coverage ratio level of all 413 Dutch pension funds was 144 per cent late 2007 and had dropped to 121 per cent by November 30, 2008. (dpa)