Netherland-based Stichting Pensioenfonds ABP, is the pension fund for government and education employees in the Netherlands, has made plans to raise its premiums in 2011. This new development has come about in anticipation of new longevity estimates being published next month.
The upcoming statistics are expected to reveal that Dutch people have considerably longer life spans than anticipated
As a result, the current rate of 21.3% will rise to 21.4% as of Jan. 1, 2011, with 70% coming from employers and the remaining 30% being acquired through members.
The release of the data in December could push the expected premium rate up even further.
“At the beginning of next year we will make an evaluation—if we are below track, we will have to take extra measures and that could be a temporary increase in premium, but it could also go the other way and the 0.1% increase could disappear altogether,” said an ABP representative.
Confirmations of premium rates will be made in January.
Despite varied funding ratios and fluctuating interest rates through 2010, ABP confirms is now back on track with its recovery plan of being 105% funded by 2013.