Increase 2024

Your pension will be increased by 5.2%.

All pensions will be increased with effect from 1 January 2024.

Yes. We will increase the pensions of everyone who accrues, has accrued or receives a pension from us on 31 December 2023.

To increase pensions, we look at the average price increase (inflation) over the past year. In addition, when calculating the increase, we looked at the fund’s most current coverage ratio. The coverage ratio is the ratio between our assets and the pensions we have to pay out. We have also taken into account the transition we will be making to the new pension system. As a fund, we must maintain a financial buffer for this.

If you are already receiving pension benefits from PGB, the increase will be included in your pension payment from January 2024.

Are you not receiving a pension from us yet? Then you will see the increase no later than the end of January at mijnpgbpensioen.nl. This is your personal online environment at Pensioenfonds PGB. You simply log in with your DigiD.

Are you accruing pension capital in a defined contribution scheme? For example, because you work in the sea fishing or wholesale of flowers and plants sectors? In that case, you accrue pension capital with us and your pension is not dependent on the coverage ratio. This means we will not increase your pension capital. Conversely, we will not reduce your pension if the coverage ratio is too low. Your pension capital increases due to the amount you and your employer pay, and because of the investment return on your pension capital. If we already purchased a pension from your accrued pension capital or if you already receive a pension from us, that pension has increased.

You will get the 5.2% increase on your reduced pension. Because, the increase of 5.2% is independent of the earlier reduction in your pension. You received a letter from Bpf AVH about this at the end of 2020.

It depends on your communication preference.

Did you opt for digital mail?
Then your monthly statement for January will be ready for you on your personal page on mijnpgbpensioen.nl by the end of February at the latest. You will automatically be notified of this.

Did you opt for a paper monthly statement? 
Then you will receive your monthly statement for January 20234 by the end of February at the latest. Would you like to see your specification earlier? You can do so on your personal page on mijnpgbpensioen.nl. There you will receive your monthly specification for January by the end of February at the latest.

We don’t know yet. At the end of 2024, we will reassess whether we can increase pensions. That’s only possible if we have enough funds and if the law allows us. An increase must also always be fair for all our participants.

Last year, the board checked September’s inflation figures to determine the increase. The inflation figure indicates how much prices have risen at a certain point in time. This snapshot gives a good idea of the price increase in a particular year. The board expects inflation to be unpredictable for the period up to 2027. It varies from year to year and even from month to month. Therefore, we now no longer use September inflation (it was -1.4%), but the average inflation over the past year.

This will give us a more controlled course of action. Using this method, we can increase pensions in 2024. There is a good chance that the annual average next year will be lower than the inflation rate at the time the decision is made. The board also took that into account when deciding on the increase.

With every decision, our board considers the consequences in the short and long term. And how this will affect our participants: those who receive pension from us, accrue pension with us or still have a pension with us. They all receive an additional 5.2%. That is generally good news. It is particularly beneficial for the participants who already receive a pension. For younger participants who are still accruing pension, it would have been slightly more favourable in the future to have a lower increase this year. The board has carefully weighed all interests in its decisions. The board believes sufficient reserves must be maintained, enabling the pension fund to make a healthy and responsible transition to the new rules for pensions with effect from 1 January 2027. In addition, the board wants to minimise the risk of having to reduce pensions in the next few years.

Financial position
The increase does have consequences for our financial situation. As a result of the increase, our funding ratio decreases. The funding ratio is the ratio between our assets and the pensions we have to pay out. The lower funding ratio reduces the financial scope for increasing pensions in the future. After all, you can only spend the money once. The consequences of the increase decision for each age group are independent of other developments that affect the coverage ratio. It rose in 2023. This is mainly due to the rise in interest rates.

The graph below shows the effect of the increase of the pensions on the expected pension by age group. The effect has been calculated with effect from 1 January 2027. This is the date on which Pensioenfonds PGB will transfer to the new pension system. Pension accrual after this date is not included in the percentages below. If this pension accrual is included, the percentages will be lower.