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Physios' scheme to grant 9% indexation

NETHERLANDS - The €1.8bn occupational pension funds for physiotherapists SPF will grant its participants an indexation next year of no less than 9.08%.

The large indexation has been made possible because the scheme now has a coverage ratio of almost 235%. The new financial assessment framework nFTK allows for a full indexation at a funding ratio of over 130%.

SPF stressed, however, its scheme is a basic one to be supplemented by an additional pension and both contributions and the pension build-up are relatively modest, it made clear.

That said, to make better use of the potential benefits of collectivity and tax advantages for its participants, the scheme has indicated it is looking at the options open to officials to consider upgrading it.

SPF recently announced it is also considering closer collaboration with the occupational schemes for obstetricians (SPV) and veterinary surgeons (SPD).

SPF's aim is to grant a yearly increase of pension promises of at least 3.75%. It paid its participants an indexation of 4.55% this year.

The physios' pension fund also announced it has changed its contribution into a fixed percentage of its members' incomes, rather than charging a fixed premium with the option of a discount in case of low earnings.

This will not only mean less administration for its members, but will also drive down the scheme's costs, it explained.

SPF said it will ask its members' for their specific wishes on communication, in addition to the legal requirements of the Pensions Act.

SPF has 24,900 participants, of whom 14,500 active physiotherapists, 8,300 deferred members and 1,170 pensioners.

If you have any comments you would like to add to this or any other story, contact Julie Henderson on + 44 (0)20 7261 4602 or email julie.henderson@ipe.com

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