At the end of September 2020 the policy funding ratio was 96.8%. This is too low for us to be able to increase pensions. The HPF has to base its decision on the policy funding ratio: the average funding ratio over the previous 12 months. The policy funding ratio determines whether we can raise the pensions (indexation) or must reduce them (cutback). Given this policy funding ratio there was no other alternative for the Management than to decide not to increase pensions on 1 January 2021.
However, the financial position of our pension fund is still adequate not to have to cut back our pensions. Read more on this subject in our blog.
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.