Mars Pension fund needs to take the decision for indexations in November of each year. The decision is based on the Wage Index and the policy funding ratio of September in that specific year. In September, the policy funding ratio was 125.2%, which is higher than the solvency margin ratio. Based on this financial position and the indexation policy, Mars Pension fund is able to grant full indexation. 

Calculation

The consumer price index is 2.70%. The target indexation is 75% of this index: 2.02%. However, the height of the indexation cannot be higher than the wage index. The wage index is 1.75%. Therefore, full indexation equals 1.75%.