PME increases pensions by 3.26 percent
Every year, the pension board determines whether pensions can be increased. An increase is only possible if the fund's financial situation and the rules allow it. And this year they do. On 1 January 2024, all pensions at PME will be increased by 3.26 percent. This applies to everyone who receives a pension, is accruing pension or has accrued pension at PME.
Relaxed government rules
The increase is possible because the government has relaxed the rules. With this relaxation, the government anticipates the new rules for pensions. PME is expected to switch to these new rules in 2026.
Why 3.26 percent?
With the increase, your pension will partly grow in line with the increased cost of living. At the same time, we will have a buffer in case of a setback. Because there is no telling how the economy will develop. This way, we limit the chance that we will have to lower your pension in the future. That buffer is also important for the switch to the new pension rules in 2026.
What does an increase mean for the future?
When making decisions, we carefully consider the short and long-term effects, ensuring the interests of all participants are weighed. While increasing pensions benefits everyone now – with pensions rising by 3.26% – it does lower our funding ratio. This will affect future increases, for example, as well as the transition to the new pension rules. It means there is less money available to distribute. The impact of these changes varies depending on age. With a lower funding ratio, this is relatively less favourable for a younger person than for an older person. But pensioners can do little to none anymore to increase their purchasing power. That’s why a pension increase is important for this group. We will keep enough money at our disposal in case of a setback and for the transition to the new pension rules. This is important for younger people. We have taken this into consideration for our decision on the increase. You can find the effects for the different age groups in this list with key questions.
