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A specific group of retirees will see their financial situation improve in the coming weeks.
The civil servants’ pension fund ABP is increasing pensions. How much extra money will they receive and what’s behind this decision?
Pensions Rise by 2.84 Percent #
Starting January 1, pensions for members of the civil servants’ fund ABP will increase by 2.84 percent, the fund announced.
This means a substantial monthly boost - for someone receiving a €1,500 monthly pension, this translates to an increase of over €42.
ABP is a pension fund for (former) civil servants, people working or having worked for the government, such as municipal employees, police officers, and military personnel. Teachers can also join ABP. Currently, 3.1 million people are affiliated with the fund.
This marks the fifth consecutive year that ABP has increased civil servants’ pensions. This year’s increase is larger than last year’s, when pensions rose by 1.84 percent. However, ABP had kept pensions unchanged for many years prior, making this increase a welcome change.
The Reasons Behind the Increase #
Inflation plays a role in the rising pensions. ABP factors in price increases measured by the Central Bureau of Statistics (CBS) between September 2024 and 2025.
Another important reason for the increase is a financial windfall for ABP. Through investments, the fund’s assets relative to what it needs to pay out to retirees currently stand at 123.6 percent. Officially, this minimum should be 105 percent, so ABP is in a strong financial position.
The New Pension System #
“We can do this because ABP’s financial position allows it. And because we’re permitted to use more flexible rules, as we’ve indicated our intention to transition to the new pension regulations,” the fund stated.
Starting January 1, 2027, ABP will switch to the new pension system, which will give the fund more financial flexibility. Under the new rules, funds need to maintain lower reserves.
Another change with the new pension system will be how pension pots are organized. Previously, pensions were paid from a collective pot, but from January 1, 2027, everyone at ABP will have their individual pension pot.