Pensioen 123 Layer 2

Increase (Indexation)

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 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.

 

If you are still accruing pension with us, we strive to increase your pension in line with the development of salaries at IFF.

If you have left your job or have already retired, we strive to increase your pension in line with the increase in prices (based on the 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 the level of the funding ratio. The table below shows when increases are possible.

Policy funding ratio

Increase

Lower than 110%

No increase permitted

Between 110% and 122%*

Partial increase possible

Above 122%

Full increase possible

* 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. Sometimes it is better to effect a slightly lower increase, so that we can continue to increase pensions in the years to come. The Board of Trustees always takes these decisions with the interests of the employees, the pensioners and the employer in mind.

The indexation allocated by the IFF Pension Fund in recent years is shown below:

Year

Increase by pension fund

Increase in prices*

2021

0,00%

1,12%

2020

0,93%

1,73%

2019

1,24%

1,68%

2018

0,70%

1,34%

2017

0,00%

0,40%

2016

0,16%

0,44%

2015

0,33%

0,75%

2014

0,15%

2,51%

2013

0,00%

1,98%

2012

0,00%

2,33%

* based on the CBS price index

 

Increases in past years

If 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 will in that case be worth slightly less. If the financial position improves in the following year, we will increase your pension. Sometimes we are able to effect an additional increase in this case. 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 or salaries.

Year       Price index Indexation

Indexation arrears

2011 1,38% 0,00% 1,38%
2012 2,33% 0,00% 3,74%
2013 1,98% 0,00% 5,80%
2014 0,90% 0,15% 6,59%
2015 0,75% 0,33% 7,03%
2016 0,44% 0,16% 7,33%
2017 0,36% 0,00% 7,72%
2018 1,34% 0,70% 8,41%
2019 1,68% 1,24% 8,89%
2020 1,73% 0,93% 9,76%
2021 1,12% 0,00% 9,48%

Outlook for the coming years

It is not likely that we will be able to effect full increases of your pension in the next five years. Curtailment of your pension is currently not likely either. The chance that pensions will have to be curtailed in the coming five years is low, but this cannot be ruled out.

Frequently Asked Questions

  • 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.