NETHERLANDS - An 11.5% improvement on ABP's coverage ratio has allowed the board to introduce a 2.82% rise in pensions to be paid out in 2007.
The ratio between assets and liabilities increased from 119.7% in 2005 to 131.2% on 1 November 2006. This will allow the €201bn fund to pay out 2.82% as indexation, that is 77% of contractual wage growth.
In addition to the structural increase in the pensions, the improvement of ABP's financial position will see its members receiving a lump payment of 2.47%.
ABP set the total premium for old-age pensions in 2007 at 19.2%. Employers will pay 13.44% of this while employees will contribute the other 5.76%. This figure was marginally lowered from the 19.4% premium paid in 2006.
The contribution rates for the flexible pensions and retirement part of ABP, that handles early retirement, will be determined later this year.
The Brunel Pension Partnership has become the fourth local authority pool to receive the green light from the regulator.
Defined benefit (DB) schemes are to be offered a new consolidator as the former chief of the Pension Protection Fund (PPF) launches 'The Pension SuperFund'.
Martin Freeman has been hired as head of technology product and development at Smart Pension, to support the 'growing' technology product side of the business.
Tim Sharp says the government has missed some big opportunities to help workers in the DB white paper.