Stable premium for Pension Fund

The Daily Herald reports that the board of pension fund Pensioenfonds Caribisch Nederland (PCN) has, for the time being, fixed the pension premiums for 2014 at the same level as in 2013. This means that the premium in 2014 will also be 26.1% of the pension base. The pension base equals the fixed salary, increased by the pensionable allowances minus the state pension offset. The state pension offset is the part of the income over which employees do not accrue pension rights as they will receive AOW state pension. In 2014, the employees will pay a premium of 8.7% of the pension base, just as in 2013. Employers will pay a premium of 17.4%.

Since life expectancy has increased, and the Dutch Central Bank (PCN) has imposed stricter requirements, PCN must hold a higher provision to be able to pay out the pensions in the short and long term. PCN is currently working on a recovery plan. The purpose of the recovery plan is to obtain a provision that meets the DNB requirements within the statutory time limit. PCN aims at keeping the amount of the premium as stable as possible.

For now, the board has decided to keep the premium for 2014 equal to the premium that was paid in 2013. However, the board of PCN does not exclude that the premium will be increased in the course of 2014 in order to further improve the financial position of PCN and to speed up the recovery. For further information please call the PCN office on Bonaire at 00 599 701 91 15 or contact them via email: secretaris@pensioenfondscn.com.