ING CDC Pensioenfonds tries to increase the pensions of ING’s current and former employees and pensioners on an annual basis, in order to stay in line with the consumer price index. However, for 2019 the pension fund will not increase pensions. The omitted indexation will be recorded in the pension fund's accounts.

In February, ING CDC Pensioenfonds sent all current and former employees and pensioners a letter regarding indexation for 2019. Below is a list of frequently questions and the pension fund’s answers.

Why is indexation important?
Annual increases of pensions (indexation) are important because they ensure that your pension retains its purchasing power.

How often does the pension fund make a decision on indexation?
Once a year, ING CDC Pensioenfonds determines whether it will increase pensions to keep up with the Dutch consumer price index from October to October.

What was decided for 2019?
For 2019, the pension fund will not increase pensions. Read more about this decision here.

What is the decision based on?
By law, indexation is only allowed if a pension fund’s policy funding ratio is higher than 110%. ING CDC Pensioenfonds takes its policy funding ratio on 30 September as a reference point. The policy funding ratio is equal to the average funding ratio for the preceding 12 months. By taking the average ratio as a reference, the pension fund ensures that the important decision of indexation does not hinge on its funding ratio at one point in time.

How much would full indexation have been?
If ING CDC Pensioenfonds had been allowed to grant full indexation, the increase for 2019 would have been 1.73%. This is based on the overall consumer price index for households in the Netherlands, published by Statistics Netherlands (CBS) for the months October 2018 through October 2019.

What happens to the omitted indexation?
The omitted indexation is recorded in the pension fund's accounts. If at some point in the future the fund’s policy funding ratio rises to an adequate level, the pension fund will consider granting the omitted indexation. However, this is currently not the case.

Further information
Would you like to have more details on indexation by ING CDC Pensioenfonds? Click here for background information. If you were working at ING before 1 January 2014, click here to read about the indexation policy of Pensioenfonds ING.