APF is increasing pensions by 0.12% as of 1 January 2024

The APF Pension Fund (APF) is increasing the pension of all participants by 0.12% as of 1 January 2024. This decision was taken by the Board of the APF in November 2023.

The pension of all participants will be increased by 0.12%
All participants will receive the same increase and this will apply to pensions regardless of whether they have become payable or not. If you have already retired, you will receive a higher benefit payment from January 2024. This will be paid out for the first time in February, with a supplementary payment for January 2024. If you have not yet retired, the pension you are entitled to will increase, so you will receive a higher pension when you do retire.

How do we determine the amount of the pension increase?
When determining the pension increase, we follow the rules of the pension regulations. The amount depends on inflation and the policy funding ratio. There is also a temporary measure that allows for an additional increase.

The maximum increase permitted as of 1 January 2024 is equal to the increase in the Consumer Price Index (CPI) for all households over the period September 2022 to September 2023. This increase was 0.20%.

Policy funding ratio
The policy funding ratio is an indication of our financial position as a fund. The policy funding ratio on 30 September 2023 was used to determine the increase. This was 118.9%. According to legislation, we are allowed to grant a partial supplement starting at a policy funding ratio of 110%. The limit for full supplementation was approximately 136.7% on 30 September 2023. According to the ‘normal’ rules, an increase based on inflation and the policy funding ratio would be 0.08%.

Temporarily expanded increase options
The increase that we are granting as of 1 January 2024 is also determined by additional leeway provided by an order in council. In anticipation of the transition to the new pension system, the order in council offers more relaxed rules for increasing the pensions, as long as the intention to transfer payable pensions and the accrued entitlements to the new pension system (also known as ‘entry’) has been declared. The social partners of APF declared this intention last year. Consequently, the lower limit of the funding ratio for the increase has been temporarily reduced from 110% to 105%. But due to the low inflation rate published by the CBS, APF is only allowed to increase pensions by an additional 0.04%. This means the total increase will be 0.12%.

A balanced decision
The board has carefully weighed the interests of all participants (active, deferred and pension beneficiaries) in making its decision. Furthermore, the effects on different age groups were also carefully considered. The effects are negligible in the case of this limited increase. This has ensured a balanced decision.

Effects of indexation 1 January 2024 for different age groups (pdf)

Why are the supplements different for other pension funds?
Every pension fund sets its own rules in its pension regulations. Pension funds may follow a different index or an index that covers a different period. The policy funding ratios also differ from one pension fund to another. This means it may be possible for some pension funds to grant a higher supplement than others are able to grant.

Interested in learning more about the background and relationship between this increase and the run-up to the new pension system?

Then click on Questions and Answers

Pension increases not guaranteed
The Board of the APF assesses whether an increase is possible or not on an annual basis. Increases are not guaranteed. They are conditional and dependent upon our financial position and prospects at the time. We therefore cannot make any promises about granting any increases in the future.