As long as you work at Mars, you build up your pension in the final pay plan. The accrual of your pension is therefore linked to your entire period of service and your last earned salary. When you leave our service or retire, we try to increase your pension every year.
When can we increase?
Whether we can increase pensions depends on the funding level. The table below shows when increases are possible.
| Policy funding ratio | Increase |
|---|---|
| Lower than 110% | No indexation possible. |
|
Between 110% and 123%*
|
Partial indexation possible. Suplement: :75% of the price index with a maximum of 3%. |
| Between 123 and 128% |
Full indexation possible. Supplement: 75% of the price index with a maximum of 3%. |
|
Above 128%
|
Full indexation possible. Supplement: 75% of the price index with a maximum of 3%. Possible catch-up supplements for missed supplements in previous years. |
* The percentages 123 and 128 are linked to MPF's investment policy. If the (investment) policy changes, these percentages may also change.
In the past years we have increased the pensions with the following percentages:
Year |
Increase |
Price increaseyear before* |
Wage increaseyear before |
|---|---|---|---|
| 2025 | 2.62% | 3.50% | 6.51% |
| 2024 | 0.16% | 0.21% | 7.23% |
| 2023 | 3.76% | 14.53% | 2.86% |
| 2022 | 1.75% | 2.70% | 1.67% |
| 2021 | 0.34% | 1.11% | 1.87% |
| 2020 | 1.98% | 2.65% | 2.61% |
| 2019 | 4.31% | 1.88% | 1.96% |
| 2018 | 0.97% | 1.45% | 1.63% |
| 2017 | 0.02% | 0.07% | 1.47% |
| 2016 | 0.30% | 0.60% | 1.48% |
| 2015 | 0.84% | 0.88% | 2.62% |
| 2014 | 1.93% | 2.45% | 1.29% |
| 2013 | 0.60% | 2.32% | 2.01% |
* the figures on the increase in prices are based on figures from the CBS.
Accrued pension before 2015?
The final pay plan has been adjusted a few times in recent years. Part of the pension was then set aside. This pension is the 'extra pension'. We have another table where you can see how Mars Pension Fund has increased the accrued extra pension in recent years.
Increasing your 'extra pension'Increase in your pension when you are out of service or retired
Are you leaving employment or retiring? Then Mars Pensioenfonds tries to grant supplements as follows:
- the supplement is 75% of the price index figure, with a maximum of 3%.
Whether Mars Pensioenfonds grants a supplement depends on its financial situation. The Board decides on this every year. As of January 1, 2023, we have increased the pensions by 3.27%. As of January 1, 2021, we have not been able to fully increase the pensions in payment because the financial position of the fund did not allow for it. As a result, an indexation arrears of 0.49% has built up. Because the financial position of the fund is better now, we will grant the missed indexation as a so called catch-up indexation of 0.49% as of January 1, 2023.
If the fund's financial position is good enough to grant a full indexation supplement, the following approach applies:
For example
Suppose inflation is 2% in a year.
Mars Pension Fund wants to grant a supplement of 75% of inflation.
- 75% of 2% = 1.5%.
- Maximum supplement = 3%.
- 1.5% is less than the 3% maximum, so 1.5% applies.
What if the financial position is not good enough??
If the financial position of Mars Pension Fund is not good enough, the Board of Trustees must decide not to grant a supplement or to grant a partial supplement.
Indexation and shortfall expectations for the coming years
There is a good chance that we will be able to increase your pension in full over the next five years. A reduction in your pension is not on the cards at the moment. For the next five years, the chance of a reduction in your pension is small (but not excluded). The chance of catch-up indexation - making up for missed indexation from the past - is high.
Policy funding ratio
Decisions of the pension fund board regarding the supplement are largely based on the financial position of Mars Pension Fund at the end of September. The funding ratio of Mars Pension Fund shows the current situation. The policy funding ratio is the average of the last twelve monthly funding ratios. Click here for more information about our financial situation and the policy funding ratio.
Frequently asked questions
The supplement (also known as indexation) to your pension is the addition you receive to maintain all or part of the purchasing power of your pension. After all, life usually becomes a little more expensive every year.
That is why MPF tries to increase your accrued pension every year on the basis of the 'consumer price index figure for all households from September to September'. This figure is set annually by Statistics Netherlands (CBS).
MPF uses the price index for the calculation. The outcome of the supplement calculation is 75% of the price index with a maximum of 3%.