Dutch pension fund PME Pensioenfonds has announced it will increase all pensions, including those of people who have not yet retired, by 1.29 per cent as of 1 July 2022.

The increase will be made as part of a first step towards a new pension system, made possible by a temporary relaxation of the rules.

The increase of 1.29 per cent is a catch-up for the missed increase that PME could not give on 1 January 2022 under applicable rules.

To determine this increase, PME has looked at the average increase in prices in the period from July 2020 to July 2021, in which it was 1.29 per cent and the sharp rise in inflation in recent months has, therefore, not been included in the figures.

At the end of the year, PME will examine whether a new increase is possible in January 2023 with the measure being the price increase in the period July 2021 to July 2022.

PME chairman of the executive board, Eric Uijen, commented: “We have previously said that we would like nothing more than to increase pensions as soon as this can be done responsibly. From 1 July it is allowed, it is possible, and we do it. It was high time.

“At the same time, we know that this small increase is a drop in the ocean for our pensioners, who feel the skyrocketing inflation in their wallets every day.

“I therefore sincerely hope that a new increase will be possible in six months' time. But I can't promise that yet, especially given the uncertain situation in the world."

In order to be able to increase pensions on 1 July 2022 under the relaxed rules, PME must have a policy funding ratio (the average funding ratio over the past 12 months) higher than 105 per cent with this number over 107 per cent at the end of May.

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