In 2025, pensions were indexed by 1.42%; in 2026, pensions will increase by 2.07% effective 1 January 2026.

The goal is to annually increase the pension entitlements and pension rights of (former) members and pensioners by the full price index. This is why we first review the price index for one year. The Board uses the price increase derived from the Consumer Price Index (CPI) over the period October 2024 – October 2025 for this purpose. Prices rose by 3.01% during that period. There are also a number of statutory indexation guidelines that must be adhered to. The Pension Fund must be in good financial shape. At a policy coverage ratio of 100%, there is just enough money to pay pensions. For partial indexation, the policy coverage ratio must be at least 110%. Full indexation is not possible until the policy coverage ratio is over 137%. However, the policy coverage ratio at the end of December 2025 was 128.71; meaning full indexation was not possible. As a result, we were able to settle on a partial indexation of 2.07%.

Payment
The indexation will be retroactively processed in the pension administration system in March. For pensioners, this means they will receive the increased pension starting in March and will also receive a supplementary payment for January and February in March.

Past years
The Fund has not always been able to fully index pensions since 2009. Pensioenfonds TNO’s reserves were not high enough for this purpose. The same applies to indexation effective 1 January 2026. The Fund adhered to the regular statutory calculation rules for determining the level of indexation. The total cumulative indexation backlog is 10.0%. This backlog was 10.3% as at 1 January 2025 and increased by 0.94% because inflation could not be fully adjusted, but also decreased by 1.25% because the missed indexation of 1 January 2011 lapsed after 15 years. To view the prior year figures check out our website here.

This is the last time we will be discussing granting indexation and missed indexation. Effective 1 July, the Fund will move to the new pension system. At that point the total missed indexation will lapse and effective 1 January 2027, pensions will be adjusted on the basis of the investment returns realised. You will be properly informed about the details of these adjustments over the coming period.

For additional information, read more about how we work towards an inflation-proof pension. Furthermore, you can follow our policy coverage ratio’s trend at Pensioenfonds TNO via LinkedIn.