Teachers' pensions not reduced
The ABP Pension Fund does not have to reduce the pensions in 2017. The largest pension fund in the Netherlands to which teachers and other civil servants are affiliated announced this yesterday.
The exact funding ratio will only become clear on 27 January. The funding ratio shows whether ABP has enough money to pay all pensions. It is the ratio between the assets and liabilities of the fund. Well the ABP knows already that the funding ratio is well above the critical limit of 90 percent. “We wanted to provide clarity to our participants as quickly as possible,” says Jos van Dijk, ABP spokesperson.
Alarm bells
In October 2016, José Meijer, deputy director of the ABP, said, in the Education Magazine precisely that alarm bells went off at ABP and that there was a 'considerable' chance that pensions would be cut.
“Our financial position was a lot worse in October,” says Van Dijk. "In November and December, that position improved due to a rise in interest rates and good investments."
Higher premium
Teachers receive as much pension as in 2016 in their bank account. In November ABP already announced that it would increase the pension premium. According to a calculation example, for someone with a gross monthly salary of 3500 euros, he pays 132 euros more of his wages per year for retirement.
According to the ABP, things are also not going so well that the fund can increase pensions. “Then a funding ratio of 110 is needed. There will probably not be an increase in the coming years, ”said the spokesman. "That is disappointing, especially since pensions have not been indexed for a number of years and prices have increased."
