NETHERLANDS – PME, the €18.5bn industry wide pension fund for the mechanical and electrical engineering industries Metalektro, says it’s set to decide when to transfer to the new financial assessment framework, or FTK.
A PME spokesperson told IPE that a decision should be reached in the first quarter of next year about when to adapt its existing policy framework to the new FTK.
The FTK – originally set for 2006 – has been postponed by the government by a year. A key feature is its focus on marking liabilities to market.
In a press statement released this week, PME also highlighted a stable premium for 2006.
“We should increase the premium but it’s already at its maximum level,” said the spokesperson. He added that because they could not increase it, they have kept it stable.
Another highlight includes an increase of 1.1% - or 80% of inflation - in pensions paid from 1 January 2006. This compares to just 60% over the past year.
The spokesperson stated that these results were “expected” and “completely followed” the policy framework.
According to the press statement, PME’s cover ratio at the end of the third quarter was 127%, with the fund striving for an average cover ratio of between 125% and 140%.
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