ABP: improved financial position offers space for some indexation

Heerlen, 16 November 2009. The board of Stichting Pensioenfonds ABP intends to adjust the pensions in 2010 to reflect part of the average growth in wages in the Government and Education sectors. For the time being, the indexation has been set at 0.45%. The ABP board has also decided to adjust the premium for old age and dependants’ pension. In 2010, this will amount to 20.3%, expressed as a percentage of the basis for premium calculation (salary after deduction of the franchise).

The board is pleased to be able to make these provisional decisions: “ABP is engaged in a catch-up exercise. While the fund’s financial position has improved, it still offers limited scope for indexation. There are still steps which need to be taken on the road to further recovery. We will evaluate the situation again in May 2010. At that time, we will assess whether, if the recovery is sustained, the pension can be raised further or, alternatively, if the economic situation is difficult, whether other measures will be needed, such as a recovery surcharge on top of the premium.”

The provisional decisions of the ABP board will be presented to the Council of Participants and the Council of Employers for their recommendations.

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