Whereas there was no possibility to index pensions in 2024 due to negative inflation, as of 1 January 2025, pensions will increase by 1.42%.

The ambition is to increase the pension entitlements and pension rights of members, former members and pension beneficiaries each year in line with full price increases. We therefore first look at inflation over the year. To achieve this ambition, the board is using the Consumer Price Index excluding product-related taxes (CPI derivative) for the period October 2023 to October 2024. During that period, prices rose by 2.58%. A number of statutory guidelines also apply for indexation. The financial condition of the Pension Fund must be healthy. A policy coverage ratio of 100% means that the Pension Fund has just enough money to administer pensions. For partial indexation, the policy funding ratio must be at least 110%. Full indexation is only possible when the policy coverage ratio is approximately 134%. However, the policy coverage ratio at the end of December 2024 was 123.4%. Full indexation was therefore not possible. We arrived at an indexation of 1.42%.

Previous years
If you look back over the past 15 years, you can see that we have not always been able to fully index pensions. TNO Pension Fund’s reserves were not high enough to make that possible.
However, for 2021 and 2022, when inflation was very high, the Board did take advantage of legal opportunities to provide additional indexation in connection with the transition to the new pension system. For these past two years, approximately 9% of additional indexation and approximately 20% of total indexation was therefore granted. This is nearly the highest percentage across all pension funds.
Although this enabled the fund to significantly reduce the indexation gap, it is still 9.1%. This year an additional 1.16% will be added. This means that a maximum indexation backlog of 10.3% remains as of 1 January 2025. Incidentally, this maximum percentage only applies to former members who stopped working at an affiliated company 15 years ago or those who have been pension beneficiaries since 2009, while for other members the maximum percentage is lower. The figures for recent years can be found here (in Dutch) on our website.