The €750m pension fund of Dutch agricultural company Royal Cosun has granted its active participants a 2.2% indexation.

PSL, the sector-wide pension fund for the shoes, leather and leather goods industry, as well as the scheme of regulator De Nederlandsche Bank (DNB), have also raised pensions this year.

Cosun increased the pensions of its workers following an agreement to come up with a 2% bonus if the 28% pension contribution proved insufficient for indexation.

The pension fund, for its part, added 0.2 percentage points, derived from a combination of its coverage ratio of 113.8% at the end of November and a salary increase.

The scheme’s funding was also the criterion for an inflation compensation of 0.16% for its deferred participants and pensioners.

The pension fund said this percentage equated approximately to one-quarter of the consumer index.

PSL said it would raise pensions for all participants by 0.1%, noting that this was the maximum possible given its coverage of 111.2% at year-end.

This funding level was 1.8 percentage points short of the required coverage ratio.

The €320m scheme for the leather industry said it did not expect any rights cuts.

The €1.4bn DNB scheme allowed all participants a 0.27% indexation, based on the consumer index and adjusted for its funding of 111%.

It said full inflation compensation would only be possible at a coverage of 125%.

Earlier this year, SPW, the sector scheme for housing corporations, announced an indexation of 0.02%.

It attributed the increase to the new financial assessment framework (nFTK), which only allows indexation if a pension fund’s financial position is sufficient to keep on granting it for years to come.

SPW based its indexation decision on a funding of 110.4%, which allows for an inflation compensation of no more than 3% of the consumer index.

Elsewhere, the €3bn pension fund of applied technical research institute TNO increased pensions by 0.05%, drawn on a coverage of 111.7% at the end of 2015.

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