Blog: No indexation of the pensions per 1 January 2022

In this last blog of 2021 we can conclude that the pandemic has still strongly determined the life and work of all of us this year. But the financial situation of the Heineken Pension Fund has been influenced.

The low funding ratios of last year are still reflected in the so-called policy funding ratio. The policy funding ratio is the average of the funding ratios of the past 12 months. In order to base decisions that are financially far-reaching for participants and the pension fund on an average and more stable reflection of the financial situation, the policy funding ratio is leading in such decisions. Far-reaching decisions are for instance the decision to decrease or increase pensions.

At the end of September, the policy funding ratio of the Heineken Pension Fund was 105.5%, which is insufficient to increase pensions on 1 January 2022 based on the applicable law and regulations. However, the financial situation of our pension fund is still enough to ensure that no cutbacks of pensions will need to be made.

You may have heard in the news that pension funds are allowed to increase pensions at a policy funding ratio of 105%. Unfortunately, this has not yet been laid down in regulations, which is why the pension fund cannot yet execute this. Should an increase in pensions later prove to be possible, the board will still assess whether the pensions can be increased.

Happy Holidays and a Happy and Healthy New Year!