Netherlands’ ABP announces pension increase for its members

Dutch pension fund ABP has announced a 2.39 per cent increase to members’ pensions, a decision that will be implemented from 1 July.

This rise represents the price increase from September 2020 to September 2021 and will be implemented as a result of the government’s adjustment of the rules, which will occur from 1 July in anticipation of the new pension system.

The scheme noted that the increase was not possible under previous regulations and, because it was not possible to give them an increase in the first six months of the year, members will also receive an additional payment at the same time as their pension in July.

Members will be able to see their new pension amount on MijnABP from the start of July and will receive a payment specification with the new amount in the same month.

Those members who have been accruing their pension will have the pension they have been accruing up to 1 January 2022 increased.

At the end of the year, ABP will also see if pensions can be increased again in 2023 by examining their financial situation at the end of October and the price increases in 2022 to determine which increase fits the interests of all groups of participants.

ABP CEO, Harmen van Wijen, commented: "We have always said: if we can and may increase pensions, we will do so, provided that we can do so in a balanced way. Our participants have had to wait a long time for an increase.

“It is therefore good that we can do it now. As of 1 July, the pension or pension entitlement for our participants will increase by 2.39 per cent. I am pleased that it is possible and that we can also implement the increase immediately in July.

“At the end of last year, that was not possible because the financial position did not allow it. Now an interim increase can take place because the government, in the run-up to the new system, has recently relaxed the rules and improved our financial position.

“At the end of this year, we will see if we can increase pensions in 2023. In doing so, we look at our financial position at the end of October and the price increase in 2022. We determine which increase fits in with this by looking at the interests of all groups of participants."

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