As of January 2020, the cover ratio in particular is an important factor in the decision to supplement or not (pension indexation).
No indexation as of 1 January 2020
The policy funding level of 108.0% at 31 December 2019 also means that as of 1 January 2020 no indexation can be granted. The policy funding level must be at least 110.0% for indexation to be allowed.
Also no pension reduction from 1 January 2020
As you know, Pensioenfonds Wolters Kluwer Nederland has not had to reduce your pension in recent years. As at 31 December 2019 the fund’s policy funding level was 108.0% (at the end of 2018, 112.9%), this means that there is no need for a reduction this year either.
Up-to-date funding level
We will, of course, continue to keep you informed. You can find the up-to-date monthly development of the fund's funding level on the homepage of our web site. You can also find the extensive 2019 annual report on this web site at the end of June 2020 and the 2020 annual review will be available one month later.
Policy on supplements and reductions
On 31 December 2019, the fund’s actual funding level was 112.1%. This means that we have €112.1 for each €100 that we have to pay in the future. Under the law, the board of a pension fund, when taking decisions, should not take the actual funding level, but the policy funding level as a basis. The policy funding level is the average funding level of the last twelve months. The amount of the policy funding level determines whether the board of the fund can index your pension rights or may have to be reduced. You can find the precise methodology on our website www.pensioen-wk.nl under ‘Indexation and reduction policy’ (the policy on supplements and reductions is only available in Dutch). At the end of 2019, the fund’s policy funding level was 108.0%. The good news is, that based on this outcome no reductions need to be made as of 1 January 2020, but no indexation is possible either. If we take the amount of the actual funding level as at end December 2019 as a basis, we expect that we also do not have to reduce your pension rights in the coming years. In case of unfavourable economic developments, however, a reduction of your pension rights cannot be ruled out entirely.