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.
The Pensions and Lifetime Savings Association (PLSA) has announced it will shrink its board by more than one-third as part of a governance overhaul to make it "agile and more appropriate".
Smaller FTSE 350 defined benefit (DB) schemes were nearly 15 percentage points less well-funded than larger schemes in 2017, according to a Goldman Sachs Asset Management (GSAM) analysis.
The advent of collective pension systems could help the UK avoid demographic challenges which will make it "impossible" for society to help savers in retirement, experts say.