To maintain the value of your pension, we aim to increase (index) your pension each year. If you accrue a pension with us, we base the increase in your pension on wage developments at IFF. We aim to increase pensions of former colleagues and pensioners in line with inflation.
Your pension is not being increased with effect from 1 January 2021 because our fund's financial position is not sufficient for this purpose. This applies to all fund members. We are only able to fully or partially increase your pension if there is a funding ratio of 110% and higher. This is based on the policy funding ratio at the end of September. The policy funding ratio at the end of September was 108.7%. This funding ratio is not enough for us to increase pensions.
How does this affect your pension?
In 2020, we were able to partially increase your pension. However, because we have not increased pensions for several years or have only partially increased them, your pension is lagging behind price developments. That means that prices are rising faster than your pension is growing, which reduces the value of your pension.