Although last year’s ‘pension climate’ was quite good, we could only index your pension to a limited extent. 2017 was also the year in which we prepared a few changes, partly due to the new government regulations. We capitalized on that moment. In 2017, we again gave a glimpse behind the scenes of the pension fund. Last, we took stock of 2017 and are looking towards the future. You can read more about this below.

Our aim is to achieve an adequate return on the accumulated capital, enabling us to pay current and future pensions. Figures are therefore part and parcel of the 2017 assessment. For example, in 2017, we achieved a return of 3.8%. The coverage ratio even increased from 106% to 114%. At 100%, we have just enough money to pay all pensions. Since the coverage ratio must be sufficiently high to justify indexation, we could not grant more than the legally permitted indexation of accrued pensions and pension benefits in payment (excluding TOP) of 0.42%.

In 2017, several changes to the pension scheme were carefully prepared with all interested parties. Besides the possibility of post-retirement investment (which is attractive particularly for TOP participants), the statutory computation age has been raised to 68 from 2018 (official ‘target retirement age for tax purposes’). This age, which was previously 65, was raised to 67 in 2015. You therefore saw several ‘growth plans’ or pension pots on your Uniform Pension Statement. As from 2018, we have merged this into a single pension pot. The increased retirement age may also help to slightly reduce the pension premium. In terms of costs, 2017 was comparable to 2016.

To inform you about changes and how your pension is growing, we let you peek into the ‘money box’ in various ways, including the Life & Pension magazine, mail-outs, ‘My Pension’ and your UPS.

Information meetings, which were held on location in 2017, also proved successful again. These meetings presented an opportunity to conduct interactive surveys and ask questions, for example about risk appetite and sustainable investments. Various other forms of monitoring also provided valuable input.

Your pension has been placed with a foundation. The policy and pension scheme are set up for and by all members. With employer representatives (TNO and affiliated organizations), employees, and pension beneficiaries, we set our course and provide for our joint pension. Our aim is not to make profit. We are committed both to your pension and that of all your retired and other colleagues. Short lines of communication with all interested parties also mean you have more influence over your pension.