The Netherlands’ two biggest pension funds, for the civil service and for healthcare workers, have decided to ignore central bank advice and put up pensions this year.

Together the ABP and PFZW cover 1.2 million members aged over 65.

The rises are modest: 0.94% for health service workers and 0.5% for former civil servants. Both funds were forced to cut pensions last year because low investment results had reduced their assets.

While the funds have now improved their coverage ratios to the required 105%, the central bank had said pensions should not be increased until the recovery is sustainable.

The two engineering pension funds PME and PMT (300,000 pensioners) have decided to free pensions, rather than cut them. This is also against the central bank’s wishes bcause both funds have still not improved their assets sufficiently.