To that end we use the increase in the ‘derived consumer price index for all households’, as established by Statistics Netherlands. We refer to this as our ambition. Each year, the Board of the Pension Fund decides whether indexation is to be applied to the pensions and, if so, what the percentage of that indexation will be.
Conditional indexation in 2017
The Board of the Pension Fund has decided to increase pensions in-payment and non-contributory pension entitlements that are conditionally indexed by 0.6% as of February 1, 2017. The increase of the derived price index was 0.6% so, considering the 0.6% increase, our ambition has been achieved.
No catch-up indexation
In line with the indexation policy, no indexation was granted in 2012. Part of the indexation not granted in 2012 was granted in 2014 (see overview below). However, at this moment the financial position of the Pension Fund does not permit catch-up adjustment. As a result, the Board has decided against granting catch-up indexation as of February 1 2017.
Retirees and former participants have since received an indexation letter notifying them of this. The letter contains all the information about the adjustments as of February 1, 2017.
You can find a historical overview of all conditional indexations over the past 10 years in the brochure titled ‘Year in brief’.