Saturday, 21 January 2021 3:45 PM

Large pension funds are announcing a large discount

For the first time in Dutch history, it was announced this week that next year there may be significant cuts in pensions. Three of the largest pension funds in the Netherlands must take measures to eliminate their funding deficits if they are unable to restore their financial situation in time. This mainly concerns the Netherlands' largest pension fund ABP for civil servants with nearly three million members and metal pension funds PME and PMT.

The funding ratio of the ABP pension fund fell to such an extent last year, forcing the fund to probably lower the pension by half a percent next year. The pensions of 100,000 retirees in the metal sector also run the risk of being significantly reduced. PMT, the largest fund in the metal industry, sees no other option than a cut of seven percent due to low interest rates due to the ongoing crisis. A final decision on this will be taken mid-February.

Other pension funds, such as Zorg en Welzijn (PFZW) and Industrial Pension Fund for the Construction Industry (BPF Bouw), are less affected by the crisis. For the time being, they do not have to intervene in pension benefits, provided that the situation on the financial markets improves this year.

 


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