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Increasing or decreasing your pension

The Board of Pensioenfonds PGB aims to apply indexation to its pensions. Whether or not the pensions can be increased depends on PGB’s financial situation.

Unfortunately, there is little chance that your pension will be increased in the next few years. This is due to the fact that our coverage ratio is too low. The Recovery Plan, compiled by PGB, includes an explanation of the extra measures that Pensioenfonds PGB intends to take to ensure that the coverage ratio returns to the statutorily required level. If you would like to know more about this, please refer to our Recovery Plan.

When will we increase your pension?
Each year, the Board decides whether or not the pensions will be increased. To this end, the Board considers the coverage ratio. This is the relationship between our assets and the pensions we have to pay out. In this context, the Board adheres to the guideline ‘Coverage Ratio and Pension Growth’. Although, the Board may deviate from this guideline.

If our coverage ratio is lower than 105%
Your pension will not be increased. It could even be reduced.

If our coverage ratio is between 105 and 110% 
Your pension will not be increased; and, potentially, it could be reduced.

If our coverage ratio is between 110 and 130% 
Your pension will be increased by between 0% and 2%.

If our coverage ratio is 130% or higher 
The first step, after the pensions are increased by 2%, will be to reverse any reductions applied in the past. Only after the reversal has been implemented, will it be possible to increase your pension further, and then only by a maximum 1%.
What pension increases have we implemented in recent years?
 
- In 2017, the pensions were not increased. In that year, prices rose by 1.38%
- In 2016, the pensions were not increased. In that year, prices rose by 0.19%
- In 2015, the pensions were not increased. In that year,  prices rose by 0.71%.
- In 2014, the pensions were not increased. In that year, prices rose by 0.96%.
- In 2013, the pensions were not increased. In that year, prices rose by 2.81%.
When do we have to reduce your pension?
- If our coverage ratio is below 105% for five (5) consecutive years.
  If the Board believes it will take more than ten (10) years for the policy coverage ratio to be higher than
  121%.

  If there is chance of a reduction and it is actually implemented, we will spread the reduction over ten
  (10) years. A reduction is applied to all (accrued) pension claims and pension payments.
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