Pensioenfonds Caribisch Nederland (PCN) keeps the premium for 2020 at the same level as in previous years, namely at 22% of income. In addition, during their meeting last week, the PCN board decided to grant an indexation of three-quarters (0.75) percent per January 1, 2020.
Although the indexation of less than one percentage point seems modest, the price development on the islands is nevertheless compensated for almost 70%. The weighted average of the inflation on the three BES islands was 1.1% in the past 12 months.
Harald Linkels, chairman of the board, says he is pleased that the fund can increase the pensions again, after a previous indexation per January 1, 2019. “The fund has achieved a high coverage ratio this year. In addition, after a number of years, we came out of a long-term recovery at the end of September ”. Linkels says that PCN must however remain cautious about developments in the near future. “American interest rates fell sharply during the course of the year, and that has a relatively big impact on the coverage ratio of the fund,” said the PCN Chairman.
Although the fund is being affected by falling interest rates, they did very well when it comes to their return on investments: Year to date PCN has achieved a return of no less than 15% on their investment portfolio.