Dutch pension fund BpfBOUW increased all pensions in payment by 20.8 per cent in 2026, following the fund's high funding ratio of 141 per cent on 31 December 2025, its annual report has revealed.

The fund said it had a good transition to the new Dutch pension system on 1 January 2026, and BpfBOUW chairman of the board, Leon Ceelen, looked back with satisfaction and relief: "Everything went as it should.”

The December 2025 funding ratio of 141 per cent was the last, as under the new pension system, there is no longer a funding ratio.

The report also showed the fund’s investment performance in 2025, noting that it experienced an investment return of -3.9 per cent, down from 7.6 per cent in 2024.

However, it explained that the benchmark, with which BpfBOUW compares itself, came in at -3.7 per cent and that the negative return was mainly due to increased interest rates.

As a result of the fall in return on investments, the funding ratio has also increased, which was the basis for the increase in pensions.

In terms of how the fund’s assets are invested, the fund stated that by the end of 2025, almost a third (about 32 per cent) of assets were invested sustainably, for example in affordable and energy-efficient homes, energy projects and companies that contribute to a better living environment.

The fund explained: “We invest the pension for participants with an eye for returns and for the world around us. BpfBOUW pays attention to topics that are important in construction, such as safe working and sustainable projects.”

The report also showed that the fund’s invested capital stood at €66.3bn at the end of 2025.

Meanwhile, the total benefits, such as retirement pensions and survivor pensions, paid by the fund were €1.85bn, and the total premium, which employers and employees jointly pay, was €1.38bn at the end of 2025.

The report indicated that the fund was made up of 158,410 active participants, 246,917 pension beneficiaries, and 330,636 inactive participants in 2025.

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