The pension fund for the metals and technology industry (PME) is increasing pensions for the first time since 2008. About 600,000 pensioners will receive an additional 1.29 percent from next month. Previously, the pension fund had to cut pensions twice more.
The fund says it is proud to present the increase, because the indexation is based on the period 1 July 2020 to 1 July 2021. Inflation was not as high then as it is now. “We know that this small increase is a drop in the ocean for our retirees, who feel sky-high inflation in their pockets every day,” said Eric Uijen, chairman of the executive board of PME.
Because the funding ratios have risen recently, the pension funds already thought that they could increase the pensions this year. Due to, among other things, rising interest rates and a relaxation of the rules as of 1 July, more pension funds are expected to announce that they will increase pensions in the near future.
The largest pension fund in the Netherlands, ABP (government and education), hopes to be able to make a decision this week. Pensioenfonds Zorg en Welzijn, good for 1.2 million active participants and 435,000 pensioners, will also announce this week whether it will increase pensions.
For the Metals and Technology (PMT) sector, it will have to wait until 5 July to see whether the pensions will increase. BpfBOUW hopes to be able to take an interim step by the end of the year.
“It is great that the financial situation of the funds has improved. And also good news for the elderly, especially with the inflation that is currently so high. Quite a lot of elderly people are in trouble as a result,” says Marike Knoef, professor of Pensions Economics at Leiden University.
Keep up with inflation
In particular, the relaxed legislation as of 1 July has enabled funds to increase pensions. Until then, funds could only adjust pensions to inflation if the funding ratio over the past twelve months was 110 percent. But as of 1 July, the funding ratio has been lowered to 105 percent. This makes it easier for funds to allow the pension to rise partly or completely in line with inflation.