Dutch pension fund increases payments by 3.68%

Stichting Pensioenfonds Hoogovens has increased pension payments by 3.68 per cent for its members.

In its first newsletter of 2022, the pension fund revealed at the end of December 2021, it had a policy funding ratio of 119.5 per cent. According to the rules of the scheme, the board may partially increase pensions when the policy funding ratio is 110 per cent or above. Full pension increases require a policy funding ratio of 123.2 per cent.

During 2021, the fund generated an investment return of 8 per cent – which is why the policy funding ratio rose from 101.8 per cent at the end of 2020, to the 119.5 per cent at the end of 2021.

In addition, the newsletter stated that in 2021, employers and employees paid in slightly more pension contributions that was necessary for accrual. The employer also paid an extra premium in 2021 as part of a collective labour agreement.

The pension fund plans to use the premium surplus and the additional premium paid by the employer to increase the accrued pensions of employees, in addition to the partial increase for everyone.

On the subject of the rising cost of living, the fund said that it tries to increase pensions annually in line with price increases. However, it noted that this year, the increase in the pension is less than price increases, which stand at 5.11 per cent.

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