PMT will increase pensions by 1.29 percent as of October 1, the pension fund of the metal and technology sector announced on Tuesday. This means that someone with a pension of 700 euros per month will receive 9.03 euros more each month. PMT does not rule out the possibility that pensions will rise even more sharply on 1 January next year.
Normally, PMT announces such an increase at the beginning of the year. It is then in effect for the whole year. But because the legal rules have recently been changed and pension funds have more room for increases, the fund is now announcing an interim increase.
Funds have recently been allowed to increase pensions if they have a policy funding ratio of 105 percent. Until recently, that was 110 percent.
The policy funding ratio says something about how good a fund’s financial situation has been over the past twelve months and PMT is above the critical limit. That means they have enough cash in hand to implement an increase. Previously, PME and ABP also increased pensions.
The increase of 1.29 percent was decided by PMT on the basis of inflation between July 2020 and July 2021. For the increase in 2023, inflation between July 2021 and July 2023 is considered.
Because prices have risen much faster during that period, PMT expects a sharper increase from 1 January. Whether there is also an increase on 1 January depends on the financial situation of PMT at that time.