PME to increase pensions by 2.82 percent
Each year, PME’s Board considers whether the fund is in a position to increase pensions. It does so because it is keen to see your pension rise with the rising cost of living. PME can only increase your pension if the fund’s financial position and rules allow it to do so. PME is once again able to do so this year. On 1 January 2026, all pensions held with PME will increase by 2.82 percent.
Relaxed government rules
The increase is possible thanks to relaxed government rules. With this easing, the government is already anticipating new pension rules. PME is expected to switch to these new rules on 1 January 2027.
Why 2.82 percent?
We always look at inflation between July and July. This year, we looked at inflation between July 2024 and July 2025. Inflation during that period was 2.82 percent. This means that we cannot increase your pension by more than 2.82 percent. As a result, your pension increases in line with the rising cost of living, and you will get a little more to spend (later). Good to know: we keep enough money in case of a setback. Because there is no telling how the economy will develop. The better our financial health, the more money we can allocate when we switch to the new pension rules. and the less likely we are to have to reduce pension pots. We aim to switch on 1 January 2027.
What will an increase mean for the future?
We consider the short-term and long-term consequences of each decision, ensuring we carefully weigh up the interests of all members. Increasing pensions now will benefit everyone. This is because the pension of everyone who has a pension with PME at the end of 2025 will increase by 2.82 percent.
However, increasing pensions will reduce our coverage ratio. This is important if we switch to the new pension rules. At that point, the money from the pension pot will be distributed. We will no longer be able to distribute all the money that is already being paid out as a result of the increase. This is relatively less favourable for a young person than for an older person. The older person now immediately has a small advantage from the increase.
The effects of the increase are different for each age. We have factored this into our decision to increase pensions. To find out exactly how, please see this list of key questions (pdf).
