Financial crisis plan
Every pension fund in the Netherlands is required to have a financial crisis plan in place. Philips Pensioenfonds’s financial crisis plan describes what action the Board of Trustees will take if the pension fund finds itself in a crisis situation, or if a crisis situation is imminent.
Pension fund’s financial position in ‘low risk’ danger zone
The policy funding ratio of Philips Pensioenfonds was 117.4% as per 30 June 2021. If the policy funding ratio is less than 123%, but above 110%, the pension fund is in a ‘low risk’ danger zone. The Fund's assets will then still exceed the value of the liabilities. The Board of Trustees then grants partial indexation, in accordance with the indexation policy and legal provisions. The decision whether or not to (partially) increase the pensions through indexation is taken on the basis of the policy funding ratio at the end of a year.
We try to increase your pension every year. This is called 'indexation'. But indexation cannot be taken for granted. Do you want to know more about our indexation policy?