NETHERLANDS - Officials at BPF Bouw, the €23bn pension fund for the building industry, have announced pensioners will not receive indexation on their retirement plans and only working members will be allocated a partial indexation payment this year because the fund is below its required cover ratio.
A spokesman for the pension fund said retirees are not being granted indexation and only working people will receive a 0.72% partial indexation payment on their investments from 1 January 2009 because the cover ratio is at 100% and therefore needs to put in place a three-year recovery plan to repair the arrears which have built up.
At the same time, the scheme will collect up to 18.9% in pensions contributions as part of its move to improve the funding ratio.
The pension fund, managed by BPF Bouwinvest and Cordares, has approximately 900,000 members and 15,000 employer sponsors from within the construction industry.
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