ABP intends to increase pensions
Pensioenfonds ABP intends to increase pensions as soon as possible. The fund announced this today. Despite the pandemic, 2021 was a good year for ABP. The assets grew by more than 11 percent to 550 billion euros.
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For retired teaching staff, who are affiliated with ABP, the good investment year offers the prospect of a higher pension payment. 'Our investors achieved good results and the rise in interest rates also helped us,' says ABP chairman Harmen van Wijnen. The funding ratio - the ratio between how much money the fund has in cash and how much is needed to be able to pay out future pensions - went 'by leaps and bounds' in 2021.
Our investors achieved good results and the rise in interest rates also helped us
A pension cut is therefore out of the question. That will certainly not take place, the pension fund has already announced. Van Wijnen says that ABP intends to increase pensions as soon as possible. An increase is not yet on the agenda, but it could happen this year if nothing crazy happens on the stock markets. In the past, the policy funding ratio had to be 110 percent, which is the average funding ratio over 12 months. From 1 July, the legal requirement will be reduced to a policy funding ratio of 105 percent. (Text continues below table)
| Key figures | Q4 2020 | Q1 2021 | Q2 2021 | Q3 2021 | Q4 2021 |
| Current funding ratio % | 93,4 | 100,5 | 104,5 | 105,3 | 110,2 |
| Policy funding ratio % | 87,6 | 89,9 | 94,6 | 98,8 | 102,8 |
Source: Pensioenfonds ABP
This amendment to the law gives pension funds the opportunity to increase pensions earlier, but this is not an obligation. The ABP has now announced that it is its intention to do so. Van Wijnen: 'We are investigating the date from which we can implement this, if the policy funding ratio exceeds 105 percent in the course of this year.' At the moment, the percentage is still too low at 102,8 percent.
Unnecessary potting
“We think it is positive that ABP intends to increase pensions as soon as possible,” says AObpension advisor Roelf van de Ploeg. “Certainly in times of high inflation, you should not hoard it unnecessarily and pay it out when you can.” The AOb has always argued with the FNV to increase pensions earlier.
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