NETHERLANDS - The PGGM pension fund has announced it will continue to index its pensions next year.
Indexation is intended to allow the pensions to grow with income and ensure the continuing level of member purchasing power.
The €88bn (US$129bn) fund posted positive result at the end of the third quarter, which showed funding levels to be 153%. This will allow for an indexation level of 1.82%. PGGM has also announced contribution rates for next year will remain unchanged.
Commenting on the move, David Uitdenbogaard, spokesman PPGM, said: “We strive to offer our clients a good and affordable pension, now and in the future.”
As Global Pensions has reported, PGGM achieved an investment return of 2.6% in the third quarter of 2007. Commodities performed well at 10.8%, benefiting from high oil prices while equities (0.4%) did not perform as well during the quarter.
Enhanced powers for The Pensions Regulator (TPR) to prosecute and fine company directors who "wilfully or recklessly" put their defined benefit (DB) pension scheme at risk will be hard to enforce, commentators say.
Melrose has pledged to contribute up to £1bn to GKN's pension schemes as part of a final offer to acquire the engineering business.
Existing master trusts will be forced to pay £41,000 when applying for authorisation under the upcoming regime, the government has confirmed.
UPDATE 2 - DWP publishes DB white paper: Stronger powers for TPR, DB chair statements to be introduced
The Pensions Regulator (TPR) will be given the power to fine company bosses who deliberately puts their defined benefit (DB) schemes at risk, the government has confirmed.