News

In this edition, among other things: two board members look back at 2022, how does Philips Pensioenfonds take into account the sustainable development goal 'Good health and well-being' in the equity portfolio and the new option 'lump sum'.

After a turbulent 2020, the Fund's financial position continued to improve in the year under review. We were able to close the year 2021 in good financial health. The policy funding ratio increased from 109.8% at the end of 2020 to 125.8% at the end of 2021. The current funding ratio at the end of 2021 was even higher at 132.3%. This enabled us to bring good news to our participants earlier this year about the indexation of pensions.

Last week, questions were asked in the House of Representatives about investments by pension funds in complex investment products and the performance fees that are paid in connection with this. Philips Pensioenfonds does not or hardly invests in the relatively expensive investment categories that are part of that conversation. For example, it does not invest in hedge funds and in the past it was decided to no longer invest in private equity. That investment category is therefore being phased out and about € 2 million remains, which amounts to approximately 0.01% of the invested capital.

Philips Pensioenfonds ended 2021 in a strong financial position. This is good news for all our members: we will grant full indexation on our pensions at 1 April 2022.

Investing pension money is necessary to be able to offer you a good pension. That is why the assets of Philips Pensioenfonds are invested. We can imagine you are wondering whether the current events in Ukraine are affecting the Fund's investments. The answer to this question is affirmative. In this news item we will give you more information about this.

In this edition, among other things: your pension can be increased in 2022, responsible investment choices focused on sustainable development goals in our equity portfolio and tips on cyber security.

Anyone who has previously worked at Philips or Signify and still has a pension with Philips Pensioenfonds will find his/her Uniform Pension Overview in MijnPPF.

Philips Pensioenfonds makes conscious investment choices in its portfolio 'shares in developed markets' for companies that contribute positively to four sustainable development goals: 'Good health and well-being', 'Climate action', 'Sustainable cities and communities' and 'Responsible consumption and production'.

Philips Pensioenfonds publishes the so-called premium funding ratio of the Fund in its annual report. Over 2020, this funding ratio was 79% (over 2019: 97%). This percentage is calculated according to the method prescribed by De Nederlandsche Bank. This percentage does not take into account a decision made by the Board of Philips Pensioenfonds to hedge the 'interest rate risk' relating to the premium and pension accrual. When the interest rate hedging is taken into account, the premium funding ratio over 2020 is 99% (over 2019: 101%). In this news article you can read why Philips Pensioenfonds has hedged the interest rate risk and what effect this has on the premium funding ratio.