On 21 November 2024, the board of Pensioenfonds PGB decided to increase all pensions by 0.4%. The increase comes into effect on 1 January 2025 and applies to everyone who receives a pension from us or who accrues or maintains pension entitlements with us on 31 December 2024.
Your pension will be increased by 0.4%. A pension of €1,000 will therefore amount to €1,004 after the increase.
All pensions will be increased with effect from 1 January 2025.
Yes. We will increase the pensions of everyone who accrues or maintains pension entitlements with us or who is receiving a pension from us on 31 December 2024.
An increase must be balanced for all participants. The board always carefully considers how much pensions can be increased in relation to how strong its buffers (financial reserves) must be. These buffers are necessary to absorb investment risks. The buffers ensure that we do not have to reduce pensions immediately after an investment loss. It's important for all our participants that Pensioenfonds PGB remains financially healthy and that it doesn't have to reduce pensions. The increase of 0.4% is a balanced choice for all our participants.
To determine the maximum amount by which we can increase pensions, we first look at the average price increase (inflation) over the past period. This was 1.5%. By how much we can increase pensions also depends on our financial situation. To this end, we look at our coverage ratio as at 31 December 2024.
The coverage ratio indicates our financial position as a pension fund. This means whether we have sufficient assets to continue to pay pensions in the future. To be able to increase pension payments in small steps, we need a coverage ratio of at least 110%. On 31 December 2024, we expect our coverage ratio to be approximately 116%. According to the statutory rules, we can therefore increase pensions by 0.4%.
For the increase, Pensioenfonds PGB assumes an average price increase (inflation) instead of the current inflation. This means that the increase is not based on the inflation rate in one particular month. This was positive for the increase on 1 January 2024, allowing us to increase over and above the current inflation rate (which was negative). The downside is that on 1 January 2025, the increase will be less than the current inflation rate. At the time, this was taken into account in the decision to adjust.
In the past 3 years, we increased pensions by 3% (2022), 7% (2023) and 5.2% (2024). This was partly due to the level of inflation, which peaked at 17.2% in 2023. In addition, we've switched to an average inflation rate.
This was positive for the increase on 1 January 2024, allowing us to increase over and above the current inflation rate (which was negative). The downside is that on 1 January 2025, the increase will be less than the current inflation rate. We understand that you may have expected more, but we've used all available space to still offer an increase.
In 2023, the board checked September's inflation figures to determine the increase. The inflation figure indicates how much prices have risen at a certain point in time. This snapshot gives a good idea of the price increase in a particular year, assuming a steady rise. However, for the period up to 2027, the board expects inflation to fluctuate significantly from year to year and even from month to month. That's why the board no longer opted for September's inflation rate, but for the average inflation over the past year. This way we achieve more controlled operations.
If you are not yet receiving pension benefits from PGB, you will be able to see the increase on MijnPGBpensioen.nl at the end of January 2025 at the latest. This is your personal online environment at Pensioenfonds PGB. You simply log in with your DigiD.
If you are already receiving pension benefits from PGB, the increase will be included in your pension payment from January 2025.
Are you accruing pension capital in a defined contribution scheme? For example, because you work in the sea fishing or wholesale of flowers and plants sectors? In that case, you accrue pension capital with us and your pension is not dependent on the coverage ratio. This means we will not increase your pension capital.
Conversely, we will not reduce your pension if the funding ratio is too low. Your pension capital increases due to the amount you and your employer pay, and because of the investment return on your pension capital. If we already purchased a pension from your accrued pension capital or if you already receive a pension from us, that pension will be increased.
You will receive the 0.4% increase on the basis of your reduced pension. This is because the 0.4% increase is independent of the earlier reduction of your pension. You received a letter from Bpf AVH about this at the end of 2020.
That depends on your preferred communication method.
In that case, your monthly specification for January will be ready for you on your personal page at mijnpgbpensioen.nl by the end of February at the latest. You will automatically receive a message about this.
In that case, you will receive your monthly specification for January 2025 by the end of February at the latest. Alternatively, you can view your specification on your personal page at mijnpgbpensioen.nl. Your monthly specification for January will be ready in your personal online environment by the end of February at the latest.
Are you already receiving pension payments and are you entitled to government benefits, for example, housing benefits or healthcare allowance? In that case, you may receive too much in benefits for 2025. Due to the increase in your pension, your income will have increased in 2025. Consequently, you may no longer be entitled to benefits or they may need to be reduced. Therefore, notify the Tax and Customs Administration of your new income via 'My benefits' as soon as possible. This way you can avoid having to pay back any excess benefits later on.
Please contact the Tax Information Line. 0800 0543 (Freephone).
That depends on your personal financial situation. Your gross annual income may increase due to the increase in your pension. Consequently, part of your income may fall into a higher tax band. If so, you will be paying more tax on that part. More information about current rates and tax bands can be found on Belastingdienst.nl.
In that case, you may end up having to pay additional tax at the end of the year. This is because the Tax and Customs Administration adds up all your income in a year. Part of that income may then fall under a higher tax band.
Contact the Tax and Customs Administration for a provisional assessment.
We don’t know yet. At the end of 2025, we will reassess whether we can increase pensions. That’s only possible if we have enough funds and if the law allows us. An increase must also always be fair for all our participants.
Yes, we do. After this increase, Pensioenfonds PGB will maintain a financial buffer that is sufficient to pay out pensions now and in the future. We will incorporate the increase in the coverage ratio for November 2024, because the decision on this was taken in that month. As soon as the coverage ratio of November 2024 is known, we will publish this on the website.
Here, you can read more about the coverage ratio.