ABP pension premium will increase in 2021
The ABP, the pension fund to which education staff is affiliated, will increase the pension premium next year. The premium rises from 24,9 to 25,9 percent. Anyone who receives an ABP pension will be stuck on the current benefit for the time being. In fact, the chance of a pension reduction before 2021 is 'still realistic', according to the ABP.
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Education staff who accrue pension with ABP will pay a little more monthly for their pension from January 2021. A teacher with a gross salary of 3500 euros will have a net premium increase of about 9 euros net per month, calculates the ABP. Pension contributions are paid jointly by employers and employees. Typically, the employer pays about 70 percent and the employee about 30 percent.
Price development
The ABP makes the same point press release know that it cannot allow pensions to grow in line with price developments in 2021. Prices rose by 0,71 percent, the fund said. ABP does not expect to be able to increase its benefits in the coming years either. On the contrary: 'The chance of a pension reduction in 2021 is still real', writes the ABP.
New Year's Day
The decisive factor is the funding ratio of the fund on New Year's Eve. By December 31, 2020, Dutch pension funds must have 90 percent of their 'liabilities' in cash to avoid a pension reduction. On October 31, the coverage ratio at ABP was 88,2 percent.
Better prepared
For teaching staff born between 1953 and 1961, ABP organizes together with the AOb this autumn some twenty small-scale, online meetings about their pension. The structure, changes in state pension ages and the choices you can make are discussed. Because the meetings were quickly booked, a new series will follow in 2021. AObmembers who are affected by this will receive an invitation by e-mail: make sure that the AOb has your correct email address and change your details if necessary MyAOb.
The ABP pension premium also increased in 2019. Then by 2 percentage points.
