Pensioenfonds ING to increase pensions in 2021; policy coverage ratio rises to 126.4%

Pensioenfonds ING, the pension fund for employees of Dutch multinational banking group ING, has revealed it will increase pension payments next year.

Publishing its monthly update, it also said its DNB policy coverage ratio remained stable at 126.4 per cent at the end of November.

In addition, its average real coverage rate at the end of November was 93.4 per cent, a decrease of -0.1 per cent from October. In November, the fund said liabilities fell slightly as a result of an increase in interest rates.

“Combined with the good investment returns, this led to an increase in the current DNB coverage ratio. This increase is not yet reflected in the (average) DNB policy coverage ratio due to the declining trend of the current DNB coverage rate in recent months,” it stated.

The fund has also announced that pension payments will increase by 1.12 per cent from 1 January 2021, for this following the price index, which is equal to the consumer price index for all households for the period between October 2019-October 2020.

Those that have pensions that follow the wage development of NN Group or ING Bank will see their pension increase by 3 per cent and the increase applies retroactively from 1 July 2020 (NN Group) or from 1 September 2020 (ING Bank).

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