The Netherlands’ BpfBouw to increase pensions by 14.5%

The Dutch pension fund for the construction industry, BpfBouw, will increase members’ pensions by 14.52 per cent on 1 January 2023, it has announced.

This is the largest increase in pensions that the pension fund has ever committed to.

The board said that the decision was made on a balanced consideration of interests, taking into account the policy funding ratio and with the intention of moving to the new pension system.

BpfBouw’s policy funding ratio was 131.9 per cent at the end of October, 14.7 percentage points higher than at the same point last year.

The fund’s current funding ratio at the end of October was 140.9 per cent.

Furthermore, the decision was in line with the advice of the accountability body of BpfBouw.

This is not the first time the fund has increased pensions, with pensions increased by 2.57 per cent in 2022.

“Prices have risen enormously in the past year,” commented BpfBouw board chair, Eline Lundgren.

“That is why I am very pleased that we can allow pensions to rise along with it. This is very good news for our participants and everyone who already receives a pension benefit from BpfBouw.

“We can do this because our funding ratio is high enough to increase your pension.”

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