Pensioenfonds PFZW will increase pension benefits by 2.7 percent from October. The fund thus follows civil servants fund ABP and metal fund PME, which also announced earlier this week that they would increase pensions, although they will do so from next month.
PFZW, the second largest in the Netherlands after ABP, is also increasing the amount of money it sets aside for those who are still building up their pension. This is also an increase of 2.7 percent.
It is the first time in years that the fund for ex-care workers is increasing pensions. This was not possible for years because the financial situation of PFZW did not allow it, which also applied to many other funds.
The fact that this is now possible is partly due to changed rules for the so-called policy funding ratio. This is an indicator of a pension fund’s financial position now and in the recent past. Until recently, this indicator was supposed to be 110 percent, but that threshold has been changed to 105 percent.
Because PFZW is just above this critical limit, an increase in pensions is possible. The fund does point out that the increase will worsen its financial position. Whether there will therefore be another significant increase at the end of the year remains to be seen.
Correction: An earlier version of this document stated that PFZW will increase pensions as of 1 July. That is not correct. They will go up on October 1.