Pensioenfonds Detailhandel increases pensions
Pensioenfonds Detailhandel increases pensions this year by 0.1 percent. This ‘partial indexation’ is the result of the steady financial course that the pension fund has been following. At the end of December 2018, Pensioenfonds Detailhandel achieved a policy coverage ratio of 110.6 percent. To be able to implement a partial indexation, a policy coverage ratio of 110 percent or higher is required. The coverage ratio indicates how financially sound a pension fund is. Pensioenfonds Detailhandel can only proceed with full indexation if their policy coverage ratio is above 124,6%. Under 104 percent pension funds are required to cut pensions.
Chairman Henk van der Kolk is pleased that Pensioenfonds Detailhandel has achieved good results, this despite the low interest rates and the huge fluctuations on the stock markets. “We want people to feel safe with our pension fund, a place where they can build up their financial back-up for later and where they can see their money grow in a sustainable way. That’s why we keep our organisation costs as low as possible and when investing try to spread and hedge the risks as well as possible. This enables us to achieve good results. Our pensioners can also benefit, as soon as that’s possible”.
With over 300,000 participants, 32,000 employers and 113,000 pensioners, Pensioenfonds Detailhandel is one of the larger funds in the Netherlands. The pension fund plans to grow substantially over the coming years. Van der Kolk: “Doing this we will achieve even more economies of scale which we can translate into perks for our participants, employers and pensioners.”