Published on 04 December 2018
Each year, we assess whether your pension can be increased in line with the cost of living in the past year. This depends on our financial situation. You have not paid a contribution for this. As of 1 January 2019, this will be partly possible with an increase of 0.56%; the cost of living rose by 1.73% (CBS consumer price index figure July 2017 - July 2018).
Decisions about increasing or reducing pensions are taken on the basis of the policy funding ratio. This is the average funding ratio over the past twelve months. The funding ratio is the financial indicator of a pension fund. If the funding ratio is 100%, the pension fund has precisely the amount of money required to pay out all pensions. The higher the funding ratio, the better the financial situation.
In the case of a policy funding ratio of 110%, the board can decide to have the pensions increased to some extent in line with the cost of living. In the case of a funding ratio of 125%, the pensions can be increased fully in line with the cost of living. At the end of October 2018, our policy funding ratio was 113.7%. Pension increases are paid from the investment return.
Your conditional pension (VPL) will be increased by 2.26%
Employees born between 1957 and 1972 may be eligible under certain conditions for extra pension in accordance with the conditional pension scheme (VPL). Every year, we determine the level of this pension on the basis of the available financial reserve. No premium has been paid for the conditional pension.
Given the current reserve, we will increase the VPL entitlements by 2.26% as of 1 January 2019. This will partly restore the VPL reduction of 7% in 2017. In 2018, the reduction was already restored to some extent with an increase of 3.85%.
You will also be able to see your increased conditional pension in My Koopvaardij in January (accessible only using DigiD).
Our ambition for increases has been adjusted
For some time now, our financial situation has not allowed us to have the pensions increased entirely in line with the cost of living. This situation is expected to continue in the next few years too. It was our intention, as laid down in our financial policy. To create realistic expectations, we have adjusted our indexation ambition downwards. From 2019, we will aim for an annual pension increase of a maximum of 50% of the cost of living index.