Conditional indexation in 2016
The Board of the Pension Fund has decided to increase pensions in-payment and non-contributory pension entitlements that are conditionally indexed by 0.1% as of February 1, 2016. The increase of the derived price index was 0.1% so, considering the 0.1% increase, our ambition has been achieved.
As announced in the December 2015 newsletter, the annual indexation date for pensions in payment and non-contributory pension entitlements was moved from July 1 to February 1. Consequently, the pensions of retirees and active Participants will be adjusted at the same time. In the case of retirees, indexation will be included with the pension payment in March, with retroactive effect up to February 1.
No catch-up indexation
In line with the indexation policy, no indexation was granted in 2012. The indexation that was not granted amounted to 2.2%. If the financial resources allow it, the Board may decide retroactively to (partially) grant any indexations unallocated or only partially granted in the past. Half of the indexation not granted in 2012 (1.1%) was granted in 2014.
However, the financial position of the Pension Fund does not permit catch-up adjustment in 2016. As a result, the Board has decided against granting catch-up indexation as of February 1 2016. The indexation that was not granted in 2012, 1.1%, remains. Catch-up indexation in respect of this can be granted until 2022.
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, 2016.
You can find a historical overview of all conditional indexations over the past 10 years in the brochure titled ‘Year in brief’.