Stichting Pensioenfonds PGGM, Zeist, Netherlands, announced that member contributions to the 45 billion euro ($48.2 billion) pension fund will be increased to about 13% of salary in 2004. Contributions were increased to 10.3% this year, from 7.6% in 2002, said Kees Verhagen, PGGM spokesman.
According to the plans annual report, published April 10, its return on investments was -7.3% in 2002 and an annualized 5.1% for the five years ended Dec. 31, 2002. Annual investment returns need to average 9% for the plan to meet its obligations.
Plan trustees will also consider introducing benefits linked to average salary, rather than the current practice of basing payments on final salaries. If adopted, the average-salary system would begin in late 2006 at the earliest, said Mr. Verhagen.