ABP pension fund to increase premiums, pay-out cut very likely

Civil service pension fund ABP said on Friday it plans to increase premiums by 1.3 percentage points to 25.4% and that a pension cut next year is on the cards.

The increase in premiums will mean a €10 rise for people earning a gross monthly salary of €3,400, the pension fund said in a statement.
The premium is being altered to take into account increased life expectancy, the make-up of the ABP fund membership and the demands of the financial service sector regulator, the fund said.
ABP said earlier pensions will no longer rise in line with wages in an effort to boost its coverage ratio.
The fund is also considering a possible drop in pension pay-outs next April. A 0.5% cut is ‘extremely likely’, fund director Henk Brouwer said in a second statement.

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