NETHERLANDS - Pensioenfonds Horeca & Catering (PHENC), the €2bn Dutch hotel and catering scheme, has decided to give a 1.25% indexation to all its pensioners and deferred members, effective from 1 January 2006.

The move follows an earlier indexation decision last December for active employees.

The new indexation is related to pension rights built up until 31 December 2005.

The extra costs will be financed by pension contributions during 2006, and investment yields over 2005. The current pension payments will be backdated.

In July 2006, pensioners are due to get their first adjusted payments, including indexation and backdated payments.

According to the scheme, the total costs of this recent indexation are expected to reach roughly €8m for pensioners and deferred members.

The agreed indexation for active employees is set at €13m.

PHENC has around 600,000 members. The scheme receives some €166m in contributions annually, and pays out about €27m.