Engineering fund puts up pensions for first time since 2008
Engineering pension fund PME is putting up payouts to pensioners for the first time since the start of the economic crisis in 2008.
The fund’s 600,000 pensioners will get a 1.29% rise from next month, now that the coverage ratio – assets versus liabilities – has risen to legally acceptable levels. This is partly due to rising interest rates and a change in the rules.
Civil service pension fund ABP, which is one of the biggest in the world, and healthcare fund PZW, with 435,000 pensioners, will also announce this week if they are able to increase payouts.
Engineering fund PMT will announce whether it can take a similar step on July 5 and construction sector fund BpfBOUW, the last of the big five funds, aims to do the same by the end of the year.
From July 1, funds are required to have a lower coverage ratio of 105% in order to put up pensions. Up to now the level has been 110%.
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