The board of Pensioenfonds PGB has decided to increase all pensions by 2.77%. This increase comes on top of the previous 0.23% increase. This brings the total increase to 3% in 2022. The increase will take effect later this year with retroactive effect from 1 January 2022.
We used the maximum margin to increase pensions
Our policy to increase has a maximum increase of 3%. Earlier this year, we increased pensions by 0.23%, allowing us to increase pensions by a maximum of 2.77% in 2022.
Chairman of the board Jochem Dijckmeester:
“At a time when prices are rising, this increase is good news. Nevertheless, the board does realise that the increase of a total of 3% does not fully compensate for inflation. But we are pleased that we can increase the pensions a bit more. At the end of this year, we’ll study the possibilities for 2023. We’ll also be looking at our financial position at the end of December.
Additional increase is possible due to relaxed legislation
Earlier this month, the government announced that from 1 July 2022, pension funds may increase pensions this year if the policy funding ratio is 105% or higher. That limit used to be 110%. A relaxation, therefore, although there are still several conditions we have to meet. The policy funding ratio of Pensioenfonds PGB is currently around 116% and therefore well above the set minimum to increase.
When will the increase take effect?
Your pension will be increased retroactively from 1 January 2022 by 2.77%. This is in addition to the previous 0.23% increase you already received. The increase applies to everyone who receives a pension from us, accrues a pension with us or still has one with us. It does take some time to process the increase in our administration. If you receive a pension benefit from us, we expect to increase this benefit from the month of October. You will also receive a subsequent payment for the increases from January.
Do you have a defined contribution scheme with us?
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 funding ratio. This means we will not increase your pension capital. Conversely, we will not reduce your pension if the funding 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 benefit from us, that pension will be increased.