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Your pension will not increase in line with prices

1/9/2019

​As of 1 January 2019, the pensions with Pensioenfonds PGB will not be increased. Unfortunately, our financial position is not healthy enough for us to be able to award indexation (supplements); this means that although living costs are increasing, pensions aren’t.


 


 

 

 

Our coverage ratio is not high enough

Legally, our policy coverage ratio must be higher than 110% before we are allowed to increase the pensions. Disappointingly, our average coverage ratio over the last 12 months was too low at the end of 2018. 

Regrettably, the improvement in our financial situation during the first nine months of the year was totally cancelled out in the last three months of 2018. In particular, the falling share price index and decreasing interest rates affected both us and other pension funds. Luckily, the chances of us having to lower the pensions is still very low, as we have a large enough buffer and are not in the danger zone.

Below, you can read how each group is affected.


 

Are you already receiving a pension from us?
If so, the gross amount you receive will not be increased. However, the net amount will change, due to changes in taxation. We will send you a letter with information about this; as well as a specification showing the amounts which are being deducted from your gross pension. 
Are you accruing pension rights with us?
If so, it means that the pension you had accrued as of 1 January 2019 will not be index-linked. When a pension is index-linked, it is raised in accordance with the rate of inflation. Naturally, your pensions will still be raised by the amount you have accrued in 2018. 
Are you accruing pension capital with us via a contribution scheme?
If so, you are accruing pension capital with us and that capital is not covered by the indexation (supplement) scheme. 
Are you a former participant who has left his/her pension with us?
If so, it means that the pension you had accrued as of 1 January 2019 will not be index-linked. When a pension is index-linked, it is raised in accordance with the rate of inflation. 
Are you receiving an invalidity pension from us? 
If so, your pension is not part of the indexation (supplement) scheme and will routinely be increased by 1.5% each year.


 


 


 

 PGB - NieuwsNavigatie ‭[2]‬

 PGB - NieuwsNavigatie ‭[1]‬