NETHERLANDS - The industrywide pension fund for building societies, SPW, has decided to grant its active members a total indexation of almost 6%.
Due to its improved financial situation, it will pay a 2.77% full indexation in 2007. On top of this, it will grant 3.17% to make up for the shortfall in three previous years, during which indexation was partly or not at all granted.
SPW has decided that pensioners and deferred members will get a regular indexation of 1.7% and an extra indexation of 1.65%,
Moreover, SPW has decreased the pensions contributions by 1%. So far, the contributions were 31.5%, whilst the costs-covering premium is 27.5%.
At the moment, the partners within the collective labour agreement, or CAO, are discussing how the contribution payment will be divided amongst employers and employees, according to the fund.
It claimed that the indexation and contributions changes have also been made possible by an asset-liability management study last year.
The new financial assessment framework FTK allows for an extra indexation if the coverage ratio of a pension scheme exceeds 135%.
SPW, the Stichting Pensioenfonds voor de Woningcorporaties, is being managed by pensions provider, Cordares.