ABP improves financial position in 2003

For the first year since 2000, in 2003 ABP has succeeded in improving its financial position. The degree of coverage reached 109%, 6% more than at the end of 2002. Thanks to a return of 11% (€14,6 billion) the equity has grown to €150 billion. With €6,1 billion, ABP’s commitments to its participants grew to €137,8 billion.

At the presentation of the annual report, John Neervens, CEO of ABP, spoke of a ‘satifying’ year: “Our reserves have not yet reached the desired level, but the results exceed the recovery plan that was agreed with the ‘Pensioen- en Verzekeringskamer’ (Chamber of Pension and Insurance).”

In spite of the positive trend, ABP had to restrict the indexation (adjustment to the wage movements) for the first time in its history. This restriction effects the pensioners, the employees who are still paying their pension contributions and the former employees with pension claims of ABP. For the civil servants and teachers, ABP restricted the indexation over 2003 to two third of the wage increase. The wage increase was 2,65%, the indexation 1,8%.

In his presentation, John Neervens pleaded more creativity in the discussion about the course of life and prepension (before the age of 65). According to him, in an aged society this is the only way to adjust peoples pension desires to the governmental desires. This is why ABP suggests to offer people the possibility to choose for which part of their job they want to retire between the age of 62 and 67.

Source: ABP

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