Health pension fund freezes pay-outs

The health service pension fund Zorg & Welzijn, formerly known as PGGM, said on Monday it is to freeze pension pay-outs for three years, the NRC reports on Monday.

But the fund, the second biggest in the country, said it would not hike premiums or change pension rules in order to help boost its assets.
The fund said at the end of last year it would freeze pensions in 2009 but now says it needs the next three years to build up its reserves.
The fund’s coverage ratio – the amount of assets it has compared with the amount it needs to meet all its pension pay-outs – has fallen to 90%, the fund said. Funds which have a coverage ratio of less than 105% have until April 1 to hand in a recovery plan to the central bank.
The fund is responsible for the pensions of some two million health service workers.

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