Stichting Pensioenfonds ABP, Heerlen, Netherlands, will cut the indexation of benefits and raise contributions under a funding-level recovery plan to be submitted to the Dutch regulator, Pensions and Insurance Supervisory Authority. The plan includes dropping the annual percentage increase in benefits to 2%, from 2.7%, and asking members, both employees and employers, to increase contributions.
The scheme had 135.6 billion euros ($156 billion) in assets and 131.7 billion euros in liabilities as of Dec. 31, which violated the minimum funding ratio of 105% mandated by the Dutch government. ABP officials admit the scheme's assets have fallen further since December. The changes are designed to bring the scheme to more than 115% funded by 2010.
