Pensioenfonds Hoogovens, the pension fund for workers of Tata Steel’s Dutch steel works in IJmuiden, has awarded its members an additional indexation of 4.42% to compensate for inflation in the first half of 2022. This brings total indexation for the year to 9.75%.

The 4.42% additional indexation equals the rise of the Dutch consumer price index from January to June 2022.

Earlier this year, Pensioenfonds Hoogovens had already awarded indexation of 5.11% in two steps.

It’s the first time the steel workers’ scheme has awarded an interim indexation. The fund adapted its indexation policy last year to allow for flexible indexation.

“According to our new policy, indexation decisions can be taken at least once a year, rather than just once,” said the fund’s president Janwillem Bouma.

“We wanted to be flexible,” Bouma added. “But at the time we couldn’t imagine we would use the provision so soon.”

According to Bouma, several other pension funds are also considering awarding interim indexation.

“After all, that wouldn’t be that strange. The state pension is also indexed twice a year,” he said.

The indexation has a negative effect of -7.4% points on the fund’s funding ratio, which has dropped from 134% at the end of June to some 126% now.

At the end of this year, Pensioenfonds Hoogovens will take another indexation decision, based on the inflation in the second half of 2022.

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