Dutch pension fund ABP to increase payouts for first time in a decade

ABP, the largest Dutch pension fund with 505 billion euros ($531.06 billion) in assets, on Thursday said it would increase payouts to pensioners by 2.39% next month - marking the first rise in more than a decade.


Reuters | Amsterdam | Updated: 23-06-2022 20:32 IST | Created: 23-06-2022 20:32 IST
Dutch pension fund ABP to increase payouts for first time in a decade
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ABP, the largest Dutch pension fund with 505 billion euros ($531.06 billion) in assets, on Thursday said it would increase payouts to pensioners by 2.39% next month - marking the first rise in more than a decade. "This is a first step," fund executive committee chairman Harmen van Wijnen said in a blog post outlining the decision. Dutch inflation was up 8.8% in May from a year earlier.

Although the civil servants' fund's assets have declined in 2022 along with a sell-off in the value of its investments, its future liabilities have declined by an even larger amount due to rising interest rates, making the increase possible. The fund's coverage ratio is at 125%, up from 110% at the end of the 2021, and 93.5% in 2020. ($1 = 0.9509 euros)

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