NETHERLANDS - The €5.5bn pension fund for medical consultants (SPMS) has decided to grant its participants an indexation of 3% despite its being underfunded.

SPMS's 3% indexation, following a relatively low pension accrual, is in line with the standard inflation compensation.

According to the pension fund's board, its decision was based on the scheme's financial position at the end of September, when the coverage ratio was 100.4%.

Although the minimum required funding ratio is 104.2%, SPMS said the standard increase of 3% was "achievable and responsible".

However, it stressed there was no margin for any additional increase, indicating that even the standard rise for 2013 might be in jeopardy if funding drops below 100%.

An SPMS spokesman told IPE that the scheme's coverage ratio, after indexation, had increased to 103.4% on 23 December.

Meanwhile, the €1.8bn pension fund of energy giant ExxonMobil announced an indexation of 1.75% following an additional contribution of €258m from its sponsors.

The funding ratio was 130% at the end of November.

And the €1.6bn pension fund of insurer Delta Lloyd has granted its pensioners and deferred member an indexation of 0.93%, or 40% of the consumer index.

Because inflation compensation for active participants is based on salary increases, and salaries were flat last year, benefits for Delta Lloyd employees will also remain unchanged, the scheme said.

The scheme's indexation decision was based on a funding of 114% at the end of October. Its coverage ratio was 112% at the end of November.

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