Indexation table

Checked on: 26 January 2023

Indexation table

The Board aims to increase your pension by wage inflation (if you are accruing pension) or by price inflation (if you are pension recipients or holder of a paid-up policy). This ambition is laid down in the indexation policy. Part of the indexation policy is also the so-called indexation table, which is the starting point for determining the indexation that is actually awarded each year. We expressly speak of the starting point. On the one hand because the Board can deviate from the indexation table, on the other hand because more indexation can never be granted than is legally permitted.

Policy funding ratio

Here you will find the current level of the policy funding ratio of Philips Pensioenfonds.

Chart funding ratio

The indexation table indicates the policy funding ratio at which the pensions are in principle fully or partially increased or must be reduced. The indexation table is adjusted periodically, in particular because no more indexation can be awarded than is legally permitted. The current indexation table is shown below.

It is good to report the following. Until recently, full indexation was possible with a policy funding ratio of around 123%. At the moment, this legal limit is significantly higher, namely around 138%. This is because interest rate developments and inflation also influence this. In addition, it is good to know that due to a recent decision of the Board, in addition to the indexation scale, a maximum to be determined annually also determines the level of the indexation. You can read more about this below.

 

The Board annually determines the maximum indexation that is justified

From 2023 onwards, the Board will annually determine the maximum percentage that is justified when it comes to increasing your pension. In doing so, the Board looks at a large number of relevant facts and circumstances, such as the financial situation, the level of inflation, the situation on the financial markets, differences between participant groups, the remaining period until the transition to a new pension system and how much other pension funds increase the pensions. The Board maximizes indexation to protect the financial buffer. This buffer will soon be used to a large extent for the participants' personal pension pots, so that all participants can make a good start in the new pension system. This is important because pensions in the new pension system, more than now, will move along with the waves of the economy. You can read more about this news item.

'Transition FTK' will not take effect until July 1, 2023

In 2021, Philips Pensioenfonds announced its intention to use less strict indexation rules from 2023 (the so-called 'transition FTK'). When using these rules, the limits that are now included in the indexation table of Philips Pensioenfonds no longer apply. Full indexing is allowed earlier. We reported on this earlier on this website. However, there is an important legal development with regard to our intentions on this point. It is about the following. The rules of the transition FTK would enter into force on 1 January 2023. Now that the entry date of the Future Pensions Act (Wet Toekomst Pensioenen) has been postponed to 1 July 2023, the transition FTK will only come into force on that date. This means that it cannot yet be used for decision-making on indexation as of 1 April 2023. This decision-making will therefore have to take place in accordance with the legislation currently in force. The indexation table as shown below and the Board's decision on the annual maximum are important for this.

Indexation table

Level of the policy funding ratio

Can pensions be increased in full or in part or should they be reduced?
Attention! In addition to the level of the funding ratio, the maximum indexation the Board deems responsible is decisive. This is decided annually.

<100%

A reduction of your pension is applicable

100% - 110%

Your pension cannot be increased

110% - 138%

Your pension can be partially increased

>138%

Your pension can be increased in full, compensation indexation is possible

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, among other things, on the financial health of Philips Pensioenfonds. What is the pension fund’s current situation?

Go to financial position