The Board has decided to increase all pensions by an indexation rate of 1.5% with effect from the 1st of April 2018. In the period between January 2017 and January 2018, prices increased by 1.5%. This means that the pensions are now fully in line with price increases in 2017. The remainders of the missed indexations in 2011 and 2012 have been granted this year. This means there is no indexation backlog anymore.
The pension fund is trying to preserve the purchasing power of the pensions. For this reason, the Board reviews every year in April whether there is scope for index-linking the pensions. This is dependent on the financial situation of the pension fund.
The indexation guideline stipulates that the financial situation at the end of December of the previous year is decisive. In making its indexation decision, the Board has availed itself of its power to depart from the indexation guideline by considering developments that took place in the past few months and the financial situation at the end of March. The Board believes that the financial position at the end of March had improved such that adequate resources are available for full indexation of all pensions.
Over the coming years, the pension fund expects to be able to achieve at least partial indexation.