In 2007, however, the indexation of pension benefits exceeds last year’s price inflation rate, 1.8%, for the first time. (Note that pension indexation is always based on the previous year’s figures.)
Because the accrued pension entitlements of active employees with average-pay-based pension schemes are also affected by inflation, they, too, are adjusted every year. In this case, however, most pension funds apply the wage index, which in 2006 was 2.0%, so that pension entitlements keep pace with (negotiated) last year’s wage increase.
A more detailed analysis of pension indexation will be published in the March 2007 Statistical Bulletin (publishing date of the Dutch version: 29 March - please allow some weeks for the English translation).