Civil service pension fund ABP is increasing pension premiums by one percentage point, taking the total premium to 21.3% of the wage cost, the Financieele Dagblad reports on Friday.

ABP says the increase is due to low interest rates, which mean the fund’s coverage ratio has fallen to 96%, the paper says.
This means it falls short of having enough assets to meet its pension obligations. The central bank wants funds to have a coverage ratio of 105%.
Once the coverage ratio is back at 105%, premiums will be cut again, the fund said.