NETHERLANDS – The €4.3bn pension fund of Unilever (Progress) has granted all its participants full indexation after the scheme reported a coverage ratio of 132%.

It said inflation compensation for active participants would be 2.25% for salaries of up to €75,000.

Although the pension fund’s ultimate aim is to grant inflation compensation for the full salary, it said its returns over the past five years had been too small.

The Unilever scheme said would grant pensioners and deferred participants an indexation of 1.98% based on the ‘derived consumer index’, which excludes the effects of changes in product and consumer-related taxes and subsidies.

At November-end, Progress’s nominal funding was 132%, while its real coverage was 98%.

Currently, the scheme’s indexation that could not be paid to pensioners and deferred members is 2.53%, it said, adding that its indexation for active participants had kept pace with inflation.

Following its indexation policy, the pension fund will start compensating for the arrears only if its real funding is more than 100%.

Meanwhile, the €2bn company scheme of insurer Delta Lloyd announced an indexation in part of 1.05% for its active participants, equating to 60% of the regular salary increase.

The increase is based on the pension fund’s coverage of 116% at October-end, it said.

The Delta Lloyd scheme added that it would grant its pensioners and deferred participants an indexation of approximately 1.2%, equating to 60% of the derived consumer index.