NETHERLANDS - PGGM, the e57bn Dutch pension fund for social and healthcare workers, will hike the contribution rate next year to 15.5% of gross salary.
The FLEX pension (pre-pension) contribution accounts for 4.9% of this total, PGGM said.
“Although PGGM achieved good investment results in 2003 and the firs nine months of this year, an increase in the contribution rate is still needed in order to replenish the financial reserves after the disappointing returns in 2000 – 2002,” the fund said in a statement.
“Rate increases are an element of the recovery plan which PGGM submitted, in common with other pension funds, to the Pensions and Insurance Supervisory Board of the Netherlands (PVK) in 2003.”
PGGM aims to increase the cover ratio to 120% by 2012. Pensions in payment will remain unchanged in 2005.
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