How certain is your pension?

What risks are involved?


What risks are involved?

The accrual and payment of pension extend over a very long period. The period from the start of the accrual until the last pension payment may be as long as 80 years. The world changes over such a period, giving rise to risks that threaten your pension. The risks may lead to a deficit.

Our fund tries to prepare itself for the risks that could threaten your pension. In the past, this has not always worked out well, due to the rapid rise in life expectancy for example. That rise exceeded what we had taken into account. If members live longer on average, their pensions have to be paid out for longer. In that case the pension fund needs more money than initially accounted for.

The value of pensions is also affected by the interest rate. Pension administrators estimate the amount of money they will need to pay out the pensions. The lower the interest rate is, the more money Bpf MITT will need available to pay out all of the pensions when the time comes. The pensions become expensive if interest rates remain low for long periods of time.

Investment results may also fail to meet expectations. For that reason, Bpf MITT ensures that the investments are spread over several investment types. Profits on investments can make up for losses in other investments. A pension fund or insurer can hedge investment risks, but this leads to costs being incurred.

There are more risks that Bpf MITT has to take into account to protect your pension as best as possible. Therefore, Bpf MITT has to manage these risks (in Dutch).

The fund management's decisions on the policy for the level of the contribution and indexation are largely based on the pension fund's policy coverage ratio (in Dutch). Since 2015 pension administrators have been obliged to operate the policy coverage ratio when making their policy decisions. The policy coverage ratio is the average over twelve months. 



Further information

Please see for more information about our financial situation and the policy coverage ratio (in Dutch).