Normally, money is worth slightly less as each year passes. Next year, € 100 will buy a little less than it will today. We strive to increase your pension each year to make sure that your pension retains its value. Whether this is possible or not depends on, among other things, the fund’s financial position. The Board of Trustees decides whether an increase is possible, and if so how much this increase should be, at the end of the year.
We strive to increase your pension annually in line with the increase in prices, based on the derived CBS price index measured from October to the end of the following October).
When can we increase pensions?
Whether we can increase pensions or not depends on, among other things, the level of the policy funding ratio. The table below shows when increases are possible.
| Policy funding ratio | Increase |
| Lower than 110% | No increase permitted |
| Between 110% and 137,7%* | Partial increase possible |
| Above 137,7% | Full increase possible |
Based on the policy coverage ratio of 134.6% on September 30, 2024, and the limit for full increase of 137.7%, all pensions can be increased by 2.34% on January 1, 2025.
* This situation depends on market conditions (in particular, market interest rates). These may fluctuate each year. If the funding ratio is higher than 110%, we consider whether there is enough capital to effect increases in the coming years as well. This is known as future-proof indexation. Increasing pensions affects our coverage ratio. We therefore look to the future when making a decision whether or not to increase the pensions. The Board of Trustees always takes these decisions with the interests of the employees, the pensioners and the employer in mind.
Increases in past years
When the fund’s financial position is weak, we will not be able to increase your pension, or at least not to the full extent. Your pension can in that case be worth less. If the financial position improves in the following year, we will try to then increase your pension. Sometimes we are able to effect an additional increase in this case. An additional (missed) indexation is only possible if the Policy funding ratio is at the level where full increase is possible. The following table shows how much your pension has been increased in previous years, and how much your pension has lagged behind the development of prices.
| Year | Price index | Indexation | Missed indexation |
| 2015 | 0.75% | 0.33% | 0.42% |
| 2016 | 0.44% | 0.16% | 0.70% |
| 2017 | 0.36% | 0.00% | 1.06% |
| 2018 | 1.34% | 0.70% | 1.71% |
| 2019 | 1,68% | 1.24% | 2.16% |
| 2020 | 1.73% | 0.93% | 2.98% |
| 2021 | 1.12% | 0.00% | 4.13% |
| 2022 | 3.28% | 1.43% | 6.05% |
| 2023 | 16.93% | 9.57%* | 13.86% |
| 2024 | - 1,98% | 0.00% | 11.60% |
| 2025 | 2.58% | 2.34% |
*Our pension regulations provide for a regular supplement of up to 4% and an additional supplement for exceptional situations. The board of the pension fund considers the record inflation of 16.93% in 2023 as an exceptional situation and therefore decided to use this provision in the pension regulations to increase the pension extra as of January 1, 2023.
Outlook for the coming years
There is a high chance that we will be able to increase your pension (partially) in the next few years. The chance that we will be able to increase your pension in full over the next five years is small. Currently, we do not expect a reduction in your pension will be needed. For the next five years, the chance of a reduction in your pension is small, but not excluded.
Frequently Asked Questions
We strive to increase your pension each year in line with price inflation. This is known as indexation. This is only possible if the Fund’s financial position is sufficient. The Pension Fund Board decides each year whether the pensions can be fully or partially indexed or that no indexation is possible on the basis of the Fund’s financial position.
When deciding on indexing, at least these principles are considered:
- the level of the fund's funding ratio
- the indexation rules as laid down in the pension regulations
- the period and yardstick for determining the amount of indexation
For several years, we have not or only partially been able to increase pensions. This means that your pension has not kept up with the development of prices.
Your pension is therefore worth less. We can repair an indexation shortfall with a catch-up increase. A catch-up increase means that we effect an increase that was missed in the past.