Future-proofing of supplements
The amount of the supplement is determined annually by the board and depends on the financial position of the fund. There is no right to a supplement and no reserve is maintained for this purpose. A supplement can only be granted if it is future-proof. This means that the financial position of the pension fund is such that it can be expected that the indexation percentage to be granted will also be paid in the future. With a policy coverage ratio lower than 110% no supplement is granted.
How do we calculate the supplement?
If the policy coverage ratio is above 110%, the law allows a pension fund to grant a supplement. Full indexation is only permitted by law from the threshold for future-proof indexation (TBI).
| Funding ratio | Supplement |
| <110% | No supplement |
| 110% - TBI | Partial supplement |
| >TBI | Full supplement |
If the policy coverage ratio is between 110% and the TBI, the degree of supplementation is actuarially calculated, and then multiplied by the measure. For pensioners and former members, the price index is used as the yardstick.
Statistics Netherlands (CBS) shows that prices rose by 2.6% between October 2023 and October 2024. For our members, the derived consumer price index is the starting point for increasing pensions. To increase, the board has taken into account the legal rules and its own indexation policy. We can only fully index at a policy coverage ratio of 131.5%. At the end of November, the policy coverage ratio was 128.1%, which is not high enough to allow a full increase.
Together, these two components mean we can partially increase pensions by 2.23% as of 1 January 2025.