The Board has decided to increase the pensions by 14.33% per January 1, 2023. For pensioners the increase of the pension benefit will be processed with the pension benefit for the month of February. You will then receive the increase twice. This means that the regular pension amount is received in March.This is equal to the increase in consumer prices between the end of October 2021 and the end of October 2022. This is the maximum increase that we can give (based on the consumer price increase from October 2021 to October 2022).
For this decision, we have used the temporary regulations that enabled us to increase pensions in full. Without these regulations, we would have been able to make up for a maximum of 75% of the price increase, despite our very high funding ratio. The temporary regulations anticipate on the new pension system. As a result, it is already possible to increase the pensions if the policy funding ratio is higher than 105% and the remaining funding ratio after the increase does not fall below 105%. The policy funding ratio of 30 September 2022 was decisive for our decision to increase pensions. The policy funding ratio was 131.2% on 30 September. That is sufficient to increase the pension per 1 January 2023 as much as possible.
The board of the HPF has decided that a maximum increase will be given. Part of the assets of the HPF is used to increase the pensions of participants, former participants and pensioners. This is in line with the pension increase policy and the strategy of the HPF for future pensions. And sufficient capital remains, not only for the future pensions of all generations, but also for a smooth transition to a new pensionsystem.
Long-term generation effects of indexation
The long-term pension results are slightly lower for the younger participant due to the extra increase. In terms of pension result, older participants benefit by a maximum of approx. 2% in relative terms.
In 2024, we will have achieved a 12.6% return by investing the pension assets. With this result, we are in the top three of the more than 170 pension funds in the Netherlands that were surveyed by consultants from OverRendement and Bell.
We are expected to implement the new pension scheme from January 1, 2026. We are preparing for this, so that this transition is done carefully. For example, in 2024 we switched to a new pension administration system. In this administration system, we can administer our current and future pension scheme. In short: with this administration system we are ready for the future.
Your pension scheme will change from January 1, 2026. In the coming months, we will explain the new pension scheme to you in small pieces. This time: the change in the way we build up pension.