Higher interest rates bring pension increase closer
The coverage ratio of the Algemeen Burgerlijk Pensioenfonds (ABP), the ratio between the value of investments and pension liabilities, rose sharply in the first quarter of this year. An increase in pensions this year is possible, but not immediately on the agenda.
"It was a quarter with great unrest about the ongoing corona pandemic and certainly also about the Russian invasion of the Ukraine," said APB chairman Harmen van Wijnen this morning in a written response to the new figures. 'The stock markets are also reacting to this: the financial markets are doing badly. ABP therefore eats up on the capital. And yet the coverage ratio of the APB is rising sharply.'
Elections for the Accountability Body of the APB will be held from April 4 to 24
The fact that ABP's financial position has improved is because the pension fund has to set aside less money with the increased interest rate to meet its future obligations. The current funding ratio increased by almost 7 percent to 117,4 percent in the first quarter of this year.
Measured over the past twelve months, this percentage was 106,5. The lower limit for a pension increase for this so-called policy funding ratio is currently still 110 percent. If parliament agrees, this percentage will be reduced to 1 on 105 July. 'Pension increases are one step closer,' says Van Wijnen.
Elections for the Accountability Body of the APB will be held from 4 to 24 April. Nineteen seats will become available for employees and pensioners in this ABP advisory body from this summer. The AOb has candidates for both groups who stand for election. AOb-candidates in the Advisory Body are members of the FNV-ACOP faction that advocates indexed pensions and investments that are green and social.
View AOb-candidates for the participants through this link. You will find the candidates for the retirees here. (Click on the list 1b: Algemene Onderwijsbond)
