PME forecasts average 12.6% pension rise in 2027

PME expects to raise pensions by an average of 12.6% in 2027 if it moves to the Netherlands’ new pension system, the metal and technology industry fund says. The forecast depends on the economy and interest rates avoiding major fluctuations, and the final increase will not be confirmed until early next year.

PME manages pensions for nearly 635,000 current and former workers in the sector. Its board member Alae Laghrich said eligible pensioners should receive a letter in February 2027 setting out their new monthly amount. Payments in March are expected to include backdated increases for January and February.

The planned change would bring PME into the new system from next year. Under the revised rules, pension funds need to hold smaller mandatory buffers, which can allow payments to rise sooner but also means they could fall more quickly in bad times. Pension benefits are no longer promised at a fixed level.

The large public-sector fund ABP is also due to switch on 1 January, but says it cannot yet estimate next year’s pensions. Its chairman, Harmen van Wijnen, cited market volatility and rising interest rates in the third quarter. The higher rates also reduced funds’ pension liabilities: ABP’s funding ratio stood at just over 132% at the end of September, close to PME’s level.