Pensioenfonds PME will increase pensions in July. It is the first time since 2008 that the fund for employees in the metals and technology sector has done so.
The increase, by just under 1.3 percent, was made possible by a relaxation of the financial rules for pension funds, which will take effect on 1 July. PME manages the pensions for more than 600,000 people.
PME director Eric Uijen calls it high time to increase pensions in a press statement. At the same time, he acknowledges that the step is ‘a drop in the ocean’, because on average prices rise much faster, which means that pensioners are still falling sharply.
“I therefore sincerely hope that a new increase will be possible in six months’ time. But I can’t promise that yet, certainly not given the uncertain situation in the world,” he says.
Bar lowered
Under the relaxed rules, pension funds will only have to keep 1.05 euros per promised euro of pension in cash from July. That is now 1.10 euros per euro promised in pension. The bar for raising pensions has been lowered in the run-up to a new pension system.
Higher interest rates in the financial markets have also helped the state of pension funds. If interest rates rise, the funds need to keep less money in cash to guarantee the payment of the old-age provision.
Free unlimited access to Showbytes? Which can!
Log in or create an account and never miss a thing from the stars.