The House of Representatives is still debating this new system this week, which should come into effect in July next year. However, due to a motion passed by former MP Gijs van Dijk (PvdA), the pension funds may already apply the new rules once this autumn. As a result, the pensions may increase if the current funding ratio in the cash is 105 percent or higher and does not fall below this after the increase.
The PFZW could increase pensions by 10 percent, but chooses not to. In this way, the fund keeps money on hand for a smooth transition to the new pension system. The fund also fears that if the increase is too large, it will have to lower the pensions again later if the value of the investments or the interest rate falls sharply.
Just in time
The Minister for Pensions Carola Schouten has decided that the old, strict rules will apply again from 1 January. According to those rules, pensions may only be increased if the funding ratio is higher than 110 percent. PFZW does not have that funding ratio in the coffers and would not have been able to increase the pensions in that case. So it takes advantage of the flexible rules just in time. If parliament approves the new system, the flexible rules will come into force again from July.
PFZW aims to maintain the purchasing power of pensions. For this, it uses inflation between September last year and the same month this year. According to PFZW, this amounts to 14 percent. The fund therefore has no room for full indexation. On October 1, health care pensions were increased by 2.7 percent for the first time in years. The premium paid by employers and employees remains the same.