News items

 
Good news! Additional pensions increase in 2022 Published: 21-07-2022

On June 10, the Board decided to increase pensions over the whole of 2021.
This will take place from July 1, 2022, and applies to all members. 

Additional increase as of July 1, 2022

SPF strives for the best possible pension. We aim to increase the pension every year and allow it to grow in line with inflation or wage rises. The financial position of the fund and the statutory regulations that apply to indexation play a major role during the annual decision-making process in this regard. This decision about the additional increase was based on the positive development of SPF’s financial position and the new possibilities offered by legislation. Adopted at the beginning of June, the legislation lowers the policy funding level that a pension fund must reach in order to increase pensions. As a result, we can grant additional indexation as of July 1, 2022, if we meet the conditions of the legislation.

The Board carefully assessed whether SPF met the conditions required by this legislation. A balance was also made between granting these increases now or, in view of the transition to the new pension system, keeping the money in the fund for the time being. During this process, the Board carefully balanced the interests of all members. The various groups of members will receive the full increase based on the yardstick laid down in the regulations.

Click here for the impact of indexation on the various stakeholders.

Additional increase as of July 1, 2022, for former employees’ payable pensions and accrued pensions:

  • Inflation was 3.28% in 2021.
  • We had already increased these pensions by 0.46% on January 1.
  • An additional increase of 2.81% will be added on July 1.

The additional increase on July 1 is not exactly the difference between 3.28% and 0.46% as we are only allowed to grant up to 3.28%. We had to take into account the pension increase of 0.46% that we already made on January 1.

Calculation example of how we have taken this into account:

Suppose your pension on January 1, 2022, is €10,000.
The maximum increase in 2022 is 3.28%. The maximum the pension can become is then €10,328.
The January increase of 0.46% means a pension of €10,046.
As the additional increase of 2.81% is on top of that, the pension will be a maximum of €10,328.

Additional increase as of July 1, 2022, for employees’ accrued pensions:

  • The average wage increase at SABIC was 3.91% in 2021.
  • We already increased these pensions by 0.55% on January 1.
  • An additional increase of 3.34% will be added on July 1.

The additional increase on July 1 is not exactly the difference between 3.91% and 0.55% as we are only allowed to grant up to 3.91%. We had to take into account the pension increase of 0.55% that we already made on January 1.

Calculation example of how we have taken this into account:

Suppose your pension on January 1, 2022, is €10,000.
The maximum increase in 2022 is 3.91%. The maximum the pension can become is then €10,391.
The January increase of 0.55% means a pension of €10,055.
As the additional increase of 3.34% is on top of that, the pension will be a maximum of €10,391.

When will I see this additional increase?

Pensioners will see the increased pension in their account from July. If the letter about the pension that this year starts after 1 July has already been sent, the increase will be in the first payment.

The pension increase for all members will also be visible in the 2023 UPS (Uniform Pension Statement) but not in the UPS we are sending this year. This UPS shows the status on January 1, 2022.

If you would like to know more about granting indexation at SPF, click here.
If you want to see how your pension has been indexed in recent years, click here.