Large funds expect to increase pensions again next year

Major pension funds such as ABP and PMT expect to increase pensions again next year, they said in their quarterly reports. That would be the second pension hike for them in a short time, after retirees were not given an increase for years.

A few months ago, some large funds warned that it was uncertain whether pensions could be raised again in 2023, but the doubt seems to have been lifted. The policy funding ratio, an indicator that measures the financial health of the funds, has risen further due to the recent rise in interest rates.

"Given our financial position, it is expected that we will be able to increase pensions in 2023," says Harmen van Wijnen of the ABP civil servants fund.

The improvement is mainly due to the interest rate, because according to the rules the funds do not have to keep as much liquid cash on hand for the payment of pensions in the coming years. At the same time, the financial markets have performed particularly poorly this year. The funds suffered large losses on their investments, in fact.

According to Van Wijnen, the precise amount that pensions can be increased is more than a simple calculation. "If we start paying out more pension, we must also ensure that there is enough left in the joint pot for young people who are far from reaching retirement. In addition, we live in a troubled time, in which the financial markets are performing poorly and we're losing power."

The will to increase pensions as much as they are able to in a responsible manner seems to be there. "We must now do what we can. Inflation of more than 14 percent is unprecedented and has a major impact on the household accounting of our pensioners," says employee chair Jos Brocken of the metal fund PMT. Joanne Kellermann, board chair of the PFZW care fund, also points out that people have to deal with high energy bills and rising prices for groceries.

The same is being said at PME, the fund for the metal and technology sector. But according to Eric Uijen, the executive board chair, it is also important to remain realistic. "Unfortunately, an increase equal to inflation is not possible for PME. I can promise that there is more available than in July."

In late June and early July, the major funds announced pension increases for the first time in years. The fact that they were able to report such a step halfway through this year was because the government had slightly adjusted the rules in anticipation of the new pension system. Next month, the boards of the funds will consider the possible increase for the new year.