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 proposed cold-calling ban may be ineffective if a collaborative regulatory approach between the UK and the European Union (EU) is not maintained post-Brexit, the Pensions Management Institute (PMI) has warned.
Some 56% of defined contribution (DC) asset managers do not believe they will have transaction cost information in time for pension funds' March year-end statements, according to Lane Clark & Peacock (LCP) research.
NEST has appointed Clive Elphick, Martin Turner, Mutaz Qubbaj and Chris Hitchen as trustee members of its reshaped board.
Most people want to avoid investing in projects that contribute to climate change, and would consider moving to another less-exposed provider, according to a survey commissioned by ClientEarth.