1
Preparations for the new pension system
A new law laying down the rules for the new system will enter into force on 1 January 2023. The Pension Fund is already making preparations so that we can switch to the new pension scheme on 1 January 2026. We have examined the choices for the types of scheme, any compensation that may be needed during the transition to the new scheme, and the expected abolition of the standard contribution. The consequences for the investment policy were also identified.
2
Composition of the Board and committees
As in the previous year, various changes took place in the composition of the Board and various policy preparation committees in 2021. Filling the vacant positions in a good and timely way made a valuable contribution to the good performance of the Board as a team. Committee continuity was also safeguarded last year.
2021: from coronavirus crisis to war in Ukraine
As well as the three stated priorities, TNO Pension Fund has an annual plan that sets out all further focal points. This annual plan indicates the Pension Fund’s direction. Apart from this, the fund also had to deal with the consequences of the coronavirus crisis in 2021.
The positive news is that things gradually improved in financial terms in 2021. The coverage ratio, the indicator of how we are doing financially, has risen again. At the end of 2021, the average 12-month coverage ratio was even above 110% again. That’s the limit above which we can introduce indexation, which is, of course, great news. But since early 2022, we have also found ourselves in another uncertain situation due to the war in Ukraine. We cannot predict how this will develop.
If you want to read more about this, download the 2021 Annual Report.
Brief preview
Of course, in this annual report we also look ahead: what developments will play an important role in the coming period?
First of all, there is the financial impact of the war in Ukraine and rising inflation. Inflation makes it more difficult to achieve an index-linked pension. Measures are being taken to limit the impact, where necessary.
We are also following social developments and taking further steps in our policy on climate and sustainability. We have already made a great start here this year.
Another factor is data quality and data security. This is also a focus point for the coming period and due to the changing threats, this issue has a high priority. Data quality is also important because of the transition to the new pension system. Because, as you know, preparations are in full swing to switch to a new pension scheme on 1 January 2023.
Of course, we’ll keep you informed of these and all other important developments.