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Pensions unchanged in 2022

On 30 November 2021, PME's coverage ratio was 104.5 %. If the coverage ratio remains over 90% on 31 December, PME will not be forced to cut the pensions in 2022.

The pensions will not be increased either. The fund's financial position does not allow for an increase. The possibility of indexation depends on the policy coverage ratio on 31 October. Our policy coverage ratio on 31 October 2021 was 101.6%. We cannot increase the pensions (partially) until the policy coverage ratio reaches 110% or more. When we reach approximately 123%, we can fully adjust the pensions to the rising prices.

Unfortunately, we do not have a crystal ball. If the coverage ratio drops, we may need to cut pensions. We do all we can to prevent that situation, but the coverage ratio depends largely on the interest rates, the return on our investments, and economic developments. 

Future-proof pension reform

We are working hard to prepare for the new, future-proof pension system that will be implemented in a few years. Until that time, the minister and the pension funds want to prevent unnecessary cuts. And the rules for pension increases are becoming less stringent. Our expectation is that, until the new system enters into force, we will be able to increase the pensions when the policy coverage ratio reaches 105%.

Read more about the pension reform.