Some time ago, a proposal was submitted in the Dutch House of Representatives to relax the conditions for pension increases by pension funds. PDN has explained this proposal (the ‘van Dijk’ motion) in previous news items and in recent Podcasts (only in Dutch). In short, the change means that, in 2022, a pension fund would be allowed to increase (index) pensions if its policy funding level is 105% or above. Until now, the lower limit was 110%. However, instead of being automatically granted, this wider margin is subject to several conditions.
The most important condition is that every pension fund board, including PDN’s, must reach a balanced decision with regard to increasing pensions. The Board feels the pressure to increase pensions and pension accrual, especially since we have not been able to do so for so many years. At the same time, it is the Board’s duty to look to the future (transition to new contract) and consider the interests of all members— active members, deferred members, and pensioners. This means that the Board is currently examining various options to see which decision is the most balanced for everyone.
As a result, there are still uncertainties regarding a possible increase and the amount of this increase. The Board intends to reach a decision on this on June 22. This decision will then be communicated as soon as possible.