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.
