As a result of persistently low interest rates, the pension accrual rate will have to be lowered in 2022, just like it was in 2021 and 2020. This means that next year your pension will not accrue at 1.784% but at 1.254%, which means a cutback of 29.7%. This reduction will only apply to 2022.

ING CDC Pensioenfonds aims to have pensions accrue at the maximum rate allowable under Dutch tax law. Based on the situation as at 30 September 2021, the fund has assessed whether the 30,5% contribution agreed by the social partners will be sufficient to fund the accrual rate targeted for 2022.

Accrual rate to be cut back by 29.7%
Unfortunately, the assessment revealed that the contribution will not be sufficient to fund the maximum accrual allowable in 2022. As a result, the accrual rate of pensions will be reduced by 29.7% in 2022. The accrual rate targeted for 2022 was 1.784% of your pension base, but it will be reduced to 1.254%. The pension fund will send you information regarding your personal situation in the fourth quarter of 2021. Click here for sample calculations customised to your situation.

Pension accrual after 2022
Based on the situation as at 30 September, ING CDC Pensioenfonds annually reassesses whether the fixed contribution will be sufficient to fund the maximum pension accrual allowable under tax law. The fund will inform you of the outcome. Please be aware that after 2022 the accrual rate could be cut back again if interest rates remain low.

Additional deposits
The ING CDC Pensioenfonds pension plan does not allow you to make additional deposits to supplement the gap in pension accrual in 2022. You will have to make use of other options, such as consulting an external adviser to set up a financial plan for your future. For more information on additional deposits, click here.

Grip on your pension
In recent years, we received questions regarding the reduction, like ‘What does this mean for my partner pension?’, ‘Can the fund apply another policy to avoid a reduction?’, ‘Can the employer make additional deposits?’, and ‘How does the fund calculate a reduction?’. Click here to read the answer to these questions and more information. Or contact the Pension Desk in case you have any question left.