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Dutch TNO to shift to average salary

NETHERLANDS - The Dutch technical research institute TNO and its employees' council have agreed on a shift from final salary to average salary pensions, Stichting Pensioenfonds TNO announced.

The change, which will be subject to approval by the scheme's participants and TNO's supervisory board, is scheduled to take effect on 1 July 2007, it said.

At the same time, workers will get a pay rise of 2.2%. An extra salary increase of 1% will be paid if the members of the pension fund agree with the shift to an average salary pension scheme, it added.

Stichting Pensioenfonds TNO has decided index its pensions by 2.2% as of 1 January 2007. Its coverage ratio is between 130% and 135%, it indicated.

The scheme has kept its contributions at 17% of salary. Workers will pay 9.8% of the salary above the contribution-free limit of €25,932, it stated.

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