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Stichting Pensioenfonds voor Huisartsen to increase pension rights by 3.45% in Netherlands

AMSTERDAM: Stichting Pensioenfonds voor Huisartsen (SPH), the €9.3b occupational pension fund for general practitioners in the Netherlands, has said it will increase pension rights by 3.45% in light of its “favorable” financial position. SPH has a nominal coverage ratio of approximately 140% and is one of the three best-performing pension funds in the Netherlands

In addition, it plans to cut its contribution for self-employed participants by 9% to a maximum of €20,910, due to the reduction of the tax-facilitated annual pension’s accrual, according to the scheme’s newsletter.

The GPs’ scheme attributed the premium reduction in particular to the increase of the official retirement age to 67, in combination with the new cap of tax-facilitated accrual at a salary of €100,000.

However, the pension fund also pointed out that the effects of low interest rates and rising longevity would partially offset the benefit of the reduced contribution.

The contribution level for employed and deputy GPs will not change, remaining at just over 17% of the pensionable salary.

In SPH’s most recent newsletter, Chairman Johan Reesink said the pension fund was satisfied with the Netherlands’ new financial assessment framework (FTK), as it has “increased the solidity of the pensions system and improved its ability to cope with downward shocks”.

In other news, the €300m Total Pension Fund Netherlands has outsourced its pension’s administration to Aon Hewitt as of 1 January.