From 1 January 2025, pensions will be increased at Pensioenfonds Recreatie. Do you build your pension here, have you previously built up a pension there, or are you already receiving a pension? Then your pension will increase by 0.86%.
How the pension increase works
Each year they assess whether they can increase the pensions. To determine if they can increase the pensions, they always look at two things:
- The rise or fall in prices of items such as gas, electricity, and daily groceries (inflation). For this, we look at the derived Consumer Price Index (CPI) from the Central Bureau of Statistics (CBS) over the period from 1 October to 1 October of the previous year. The CBS publishes this index.
- Our policy funding ratio on 30 September. This indicates whether we have enough money in reserve to (partially) increase the pensions.
Prices increased
To determine if prices have increased, they looked at the derived Consumer Price Index (CPI) over the period from 1 October 2023 to 1 October 2024. Prices increased by 2.54% during that period.
Why an increase of 0.86%?
To determine if they have enough money in reserve to increase the pensions, they look at the policy funding ratio on 30 September 2024. The policy funding ratio on that date was 118.8%.
To increase the pensions by 2.54%, the policy funding ratio on 30 September 2024 would have needed to be at least 141.0%. Unfortunately, the policy funding ratio of 118.8% is not high enough to allow pensions to rise as much as prices (2.54%). They can partially increase the pensions from 1 January 2025: by 0.86%.
Pensioenfonds Recreatie understands that you may have hoped for more. Because in recent years they have not been able to increase the pensions. They find this very unfortunate. They are pleased that the pensions can now be increased, even if it is less than the price increase of 2.54%. And after the transition to the new pension rules, they hope that pensions can be increased more frequently.
Want to know more about the financial status of the Pension Fund
Do you want to know more about their financial status? Then view the Your career of the financial situation and the policy funding ratio over the past few months.