Starting last year, we have had approval to apply the more lenient indexation rules under the transitional financial assessment framework. Those rules make it easier for us to increase our pensions, and at a higher rate, than would be possible without the transitional financial assessment framework. On the one hand, it is positive that you are more likely to receive indexation now, and at a higher rate; on the other, it also means ‘dividing up’ the Pension Fund’s assets sooner, and so reducing the amount that is available when we make the switch to the new pension plan on 1 January 2027, including for each member’s personal pension capital. With this in mind, to apply the more lenient indexation rules we must first demonstrate that we can justify doing so, given the Pension Fund’s financial health, and calculate how it will impact our members in the various separate age groups. Our explanation is presented in our ‘Bridging Plan’. We recently updated that plan and submitted it to the Dutch central bank (DNB) as our supervisory authority.
The information in the Bridging Plan
Our Bridging Plan for 2024 showed that we expected our finances to still be sufficiently healthy, even by a margin, when we switch to the new pension plan, including if we applied the more lenient indexation rules. It also confirmed that applying the more lenient rules would not cause any major differences between separate categories of members, or between older and younger members.
Download bridging plan
You can download an abbreviated version of the 2025 bridging plan from our website.
Go to bridging plan 2025The updated Bridging Plan for 2025 sets out calculations based on our funding ratio (which measures our financial health) at 31 December 2024. At the end of 2024, the actual funding ratio was 122.7%. Although this was lower than foreseen in the Bridging Plan for 2024 (124.3%), we can nevertheless still justify applying the more lenient indexation rules. The Bridging Plan for 2025 demonstrates that we expect the funding ratio to still be sufficient, even by a margin, when we make the switch.
The Bridging Plan for 2025 also shows that we could apply the more lenient rules in 2026 as well. Whether or not we do so in 2026 still needs to be decided: for the indexation at 1 April 2026, we will have to consider what a sensible rate of indexation is at that time.