The average growth in wages in the Government and Education sectors has caused the board of Stichting Pensioenfonds ABP to adjust pensions in 2010.

The board has currently set indexation at 0.45 per cent, and has also adjusted the premium for old age and dependants' pension, making the 2010 basis for premium calculation, which is salary after deduction of the franchise, amount to 20.3 per cent.

These provisional decisions are part of ABP's "catch-up exercise", said the board. "While the fund's financial position has improved, it still offers limited scope for indexation. There are still steps which need to be taken on the road to further recovery. We will evaluate the situation again in May 2010. At that time, we will assess whether, if the recovery is sustained, the pension can be raised further or, alternatively, if the economic situation is difficult, whether other measures will be needed, such as a recovery surcharge on top of the premium," read the statement.

The Council of Participants and the Council of Employers will be presented with the provisional decisions for their recommendations.

Pensions will rise from January 2010 by 0.45 per cent in total, following an increase in average wages of 2.20 per cent in 2009. Of the 0.45 per cent increase, 0.28 per cent is permanent and 0.17 per cent a one-off rise.

Of the 20.3 per cent old-age and dependants' pension for 2010, 70 per cent is paid by the employer and 30 per cent by the employee. The premium was 20 per cent in the first half of 2009, and 21 per cent in the second half due to the introduction of a one per cent recovery surcharge on 1 July. This surcharge will be allowed to lapse from 1 January 2010, and the recovery surcharge of two per cent, due for introduction from 1 January 2010, has also been dropped.

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