The financial situation of the five large pension funds was further strengthened in the past quarter. Significant losses on the financial markets are compensated for by rising interest rates, according to the quarterly figures from the largest funds.

In addition to the 10 percent increase in the statutory pension for many pensioners in the coming year, a partial indexation of the supplementary pension is also in sight.

The average coverage of the largest pension fund, the ABP civil service fund, was over 116 percent in the past 12 months. At more than 105 percent, partial inflation compensation can take place from next year.

“Given our financial situation, it is expected that we will be able to increase pensions in 2023,” says Harmen van Wijnen from the ABP board.

But what is responsible for this, according to Van Wijnen, is more than a simple calculation. “If we start paying out more pensions, we also have to ensure that there is enough left in the common pot for young people who are not yet ready for retirement.”

According to ABP, there is also a lot of uncertainty in the financial markets and money is needed to make the transition to the new pension system.

The health and welfare funds as well as the PME and PMT (metal and technology) funds have also reached the 105 percent share of the so-called policy funding ratio, albeit somewhat lower than the ABP. This coverage level is important in determining whether funds to increase pensions are eligible.

“It’s good that the government has decided to increase the statutory pension by 10 percent in 2023,” says Jos Brocken, chairman of the PMT works council. “Even with the more flexible indexing rules, our coverage level will not be sufficient to reach that percentage, but I hope we can get as far as possible.”

In November, the funds will decide whether and how much they will increase pensions from January.