Civil service pension fund to raise premiums
Civil service pension fund ABP, one of the biggest pension funds in the world, said on Tuesday it is to raise its premiums in order to restore its coverage ratio to the required 105%.
Premiums for both employers and workers will rise 1% this year and 2% in 2010, continuing for four years, ABP said.
The fund’s coverage ratio has fallen to 83% and it says it needs to generate an additional €5bn over five years to bolster its assets.
Pension pay-outs will also be frozen for the next four years, ABP said. The fund is also taking steps to reduce its investment risks.
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