Building scheme to grant full indexation
NETHERLANDS - The industry-wide pension fund for the building industry BPF Bouw has announced it will fully index the pension claims and benefits next year.
The full indexation - 2.52% this time - is for the second consecutive year, and is equal to the salary index of the building industry, it said.
The scheme added it will keep the contributions at the same level while premiums for the sector ‘joinery, completion and natural stone' will even decrease slightly, it indicated.
BPF Bouw expects its coverage ratio to be 144% at the end of this year. The rules of the new financial assessment framework FTK allow for a full indexation at a funding ratio of over 130%.
BPF Bouw, which has 20,000 affiliated companies, takes care of the pensions of approximately 900,000 (former) employees in the building industry. Its administration and asset management is being carried out by Cordares.
Elsewhere, the €10bn industry-wide pension fund for the printing industry PGB said it will raise its pension promises by 1%, in addition to an indexation of 1.09%.
It recently announced it will decrease its contributions by 0.5% to 17% in 2008.
According to PGB, its coverage ratio is nearly 150%. Last year, it granted an indexation of 1.5%.
PGB's scheme is carried out by Grafische Bedrijfsfondsen (GBF). It has approximately 293,000 members and 3,000 affiliated employers.