Indexation ambition

Checked on: 24 March 2022

Indexation ambition

The Board of Trustees does everything in its power to grant indexation to raise your future pension. However, as the events in recent years show, the pension fund is very much subject to external developments, and unfortunately we cannot give any guarantees. Nevertheless, the Board of Trustees seeks to offer you a pension that will retain its purchasing power over time – it is important to the Board to be able to index your pension. The ‘ambition’ is the target that the Board of Trustees sets for Philips Pensioenfonds pensions. Read on to find out what the ambition means in concrete terms for retired members and active members. Incidentally, the indexation ambition is not determined by Philips Pensioenfonds but by the social partners at Philips (also for members who work for Signify).

Indexation table

The indexation table shows precisely when we can grant you indexation.

More about indexation table
Ambition for retired members

The ambition of Philips Pensioenfonds is to increase your pension annually by the same rate as price inflation, expressed in the derived consumer price index established by Statistics Netherlands (CBS). Unlike the ‘standard’ consumer price index, the derived consumer price index does not reflect changes in the rates for product-linked taxes (such as VAT and duties on alcohol and tobacco), municipal taxes and subsidies – essentially, price changes resulting from government measures.

The Board of Trustees of Philips Pensioenfonds does not consider it to be the pension fund’s duty to settle the effects of government measures. As a result, the rate by which your pension with Philips Pensioenfonds increases (based on the ambition) consistently deviates (though mostly only slightly, but a little more in 2022 due to the reduction of the energy tax) from the price increases according to the ‘standard’ consumer price index. Philips Pensioenfonds is not alone in this: the overwhelming majority of pension funds use the derived consumer price index.

Ambition for active members

The ambition of Philips Pensioenfonds is to raise your accrued pension rights every year by the same rate as wage inflation, expressed in the collective salary scale adjustments under Philips’s collective labour agreement (including for Signify employees). Whenever the Board of Trustees passes a decision to raise the accrued pension rights for members participating in the flex pension plan, that rise takes effect on the same date every year: 1 April.

We expect to be able to increase your pension in the years ahead

Philips Pensioenfonds intends to make maximum use of new legal indexation rules in the coming years. These rules are less strict. Partly for this reason, the chance of full indexation in that period is high. Of course, our financial position also plays a role in this. In view of our current financial position, the chance of a reduction in your pension is very small.

Point of attention in the forecast for the coming years

Developments in the financial markets influence the financial health of Philips Pensioenfonds and therefore also the chance of indexation. These developments are usually difficult to predict. For example, the current events in Ukraine are creating more uncertainty in financial markets worldwide.

Related information

You might also be interested in the following information.

News overview

Visit our news page to find out the latest news, including information about increases in your pension through indexation.

Go to news overview
Financiele positie

Financial position

Whether your pension can be increased, and if so by how much, depends on the financial health of Philips Pensioenfonds. What is the pension fund’s current situation?

Go to financial position