ABP does not increase pensions
Pensioners at the ABP pension fund will no longer receive a pension next year. ABP is unable to increase pensions because their financial position does not allow this. The premium for workers and employers will not change.
Picture: Type tank
The pension fund announced this today. Employees from education are affiliated with the ABP. Not increasing the pensions means that the pension will not grow in line with the rising prices for, for example, petrol, gas and foodstuffs. “So you can say that retirees will be able to buy less bread in 2022 than this year,” says AObpolicy advisor Roelf van de Ploeg.
Backlog
The pensions have not been increased since 2008 and so the arrears continue to grow. “The price increases (inflation) have been low in recent years, so you notice it a little less. Retired people now feel even more so because of the rising inflation that pensions are not increasing now.” The government does index the AOW. “That gives the lowest incomes a little compensation because the main part of the income for this group is AOW,” says de AOb- policy advisor pensions.
The ABP board cannot increase the pensions because the average funding ratio of the fund is too low at 100,3 percent. This must be 110 percent in order to be allowed to increase the pensions. This means that for every euro in pension that they want to pay out, they must have 1,10 euros in cash.
Smoother
Under pressure from the PvdA, the cabinet recently decided that pensions may be increased if the average funding ratio of a pension fund is higher than 105 percent. The AOb is pleased with this change, there has been a lot of lobbying within the FNV context. Nevertheless, it does not matter to participants at the ABP, because an average funding ratio of 105 percent is not yet on the agenda. Only in the spring of next year will it be examined whether the pensions can be increased.
Premium
Workers and employers will continue to pay the same premium. This will not change next year. In recent years, pension premiums have risen, and that is reflected in the collective labor agreement tables. “Employers also pay more premiums and that is at the expense of the wage room,” says Van der Ploeg. “Now that the premiums remain the same, this is not an issue.”
The Accountability Body of the ABP, which also includes members of the AOb members, advised negatively on the board's decision not to increase pensions and premiums.
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