How secure is your pension?

Your pension is not certain. Risks may arise for you pension and there may be a pensions shortfall. For example:

  • The average age of people in The Netherlands is increasing. As a result, we have to pay their pensions for a longer time. And we need more funds to meet our pension commitments.
  • A low interest rate makes pensions more expensive. As a result, our pension fund will need to be better funded to be able to pay all pensions.
  • Our investments results may be disappointing.

In layer 2 you can read more about our financial situation and the policy funding ratio. If these are poor, your pension may become lower.

Each year the pension fund tries to increase your accrued pension, also referred to as indexation. The purpose of indexation is to keep the value of your pension in line with the increase in negotiated wages or prices, if higher. Your pension will only beincreased if the pension fund’s financial situation is sufficient.

As of 1 January 2019 we increased the pensions of active participants of the pension fund with 1.42% and the pensions of retirees and former participants with 1.06%.

Over the last 5 years the pensions have been adjusted as follows:

date of change
pension active participants increased by
pension former participants increased by
increase of the negotiated wages
price increase*
2018
0.47%
0.79%
1.35%
2.25%
2017
0.00%
0.00%
2.00%
0.36%
2016
0.57%
0.13%
2.00%
0.41%
2015
2.25%
0.75%
0.75%
0.75%
2014
0.00%
0.00%
2.51%
0.90%

*Source: Central Statistics Office in the Netherlands, consumer price index, October to October

Do we have a shortfall? Then we may have to take measures. For example:

  • Adjustment of our investment policy
  • Adjustment of the pensions contributions
  • Ask the employer for a extra contribution
  • Reducing the pensions. We only do this as a last resort

To date it has not been necessary. However, the pensions did not fully grow in line with the wages or prices.