DNB: more Dutch pension funds allowed indexation
Written by Tineke de Vries
The number of Dutch pension funds that can provide some indexation has increased during 2017, De Nederlandsche Bank has said.
Almost 1.8 million pensioners and employees are members of a pension fund that can increase pension payments slightly this year. This amounts to 837,000 pensioners and 927,000 employees. Last year only 154,000 pensioners and 430,000 active members received some indexation.
However, the financial position of 54 pension schemes has not yet risen above the minimally required level. Because this includes a lot of large pension funds, this affects 3.5 million active members and 1.9 million pensioners. For these pension funds, the possibility of pension cuts within the next few years remains.
To be allowed to increase pension payments, the policy coverage ratio of a pension scheme needs to be above 110 per cent. But the current ratio stands at an average of 106.5 per cent.