Indexation

When the prices increase, the question is:

How does your pension retain its value?

PCN has a conditional indexation plan. The starting point is that in principle pension entitlements and pension rights are adjusted each year on January 1 to the increased costs of living. 

The level of indexation depends on the financial position of PCN. Only if the financial position of the pension fund is considered to be sufficient, indexation will be granted. If the financial position is insufficient, then no or only partial indexation is granted. The board of the pension fund determines each year whether and to which extent the financial position of the fund is sufficient grant indexation.

About the indexation

The indexation is funded from the investment return and/or the present means of the fund. This is the return on equity investments and is only a small part of the total investments.

There is no right to indexation. The fund does not hold reserves to grant the future indexations. The indexation is not paid from the contribution either.
A decision to grant indexation in any year is not a guarantee that any indexation will be granted in future years. 

At least once every three years the board performs a continuity analysis which offers insight into the projected level of the conditional indexation