About APFA - Algemeen Pensioenfonds Sint Maarten · 10/4/2014 · APFA’s History Algemeen...
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April 11, 2014
Transcript of About APFA - Algemeen Pensioenfonds Sint Maarten · 10/4/2014 · APFA’s History Algemeen...
April 11, 2014
About APFA …
About APFA
Pension Fund for civil servants and employees of government related entities
Two pension plans
• NPR 2005
• NPR 2011
10,000+ participants
APFA team: 36
APFA’s History Algemeen Pensioenfonds Nederlandse Antillen
(APNA) / PVL Before 1986 – Auxiliary Branch APNA 1986 – Algemeen Pensioenfonds sui generis 2005 – Stichting Algemeen Pensioenfonds – Nieuw Pensioenreglement 2005 2011 – Nieuw Pensioenreglement 2011 – Supervision Central Bank of Aruba
APFA’s History
Supervision Central Bank of Aruba
State Ordinance for Company Pension Funds
Capital Funding System
Maximum actuarial interest rate 4%
Recovery Plan
APFA’s Participants
62%
3%
35%
Actieven
Premievrijen
Pensioengerechtigden
2013
Active participants
Inactive participants
Retired persons
Presenter
Presentation Notes
Per eind 2013: totale bestand 10,625 Actieven: 6,546 (62%) Slapers: 311 (3%) Pensioengerechtigden (35%)
APFA’s Participants
Y/E 2013 NPR 2011 NPR 2005
Active participants 6,248 298
Retired persons 3,766 2
Inactive participants (sleepers)
297 14
Average age active participants
44 43
APFA’s Pension Plans
NPR 2005 and NPR 2011
Average pay plan (PVL: final pay plan) Indexation (conditional) (PVL: DT) Pension Age: 60 years (PVL: 55 years) NPR 2011: transitional measures Pension Accrual: 2.15% (PVL: 2.34%) Franchise: Afl. 14,059 (PVL: 0)
APFA’s Financial Position
Y/E 2013 NPR 2011 NPR 2005 Invested Capital (Afl, x thd) 2,174,180 7,707 Pension Provision (Afl, x thd) 2,621,751 6,795
Funding Ratio (Net) 77.5% 106.0% Fundig Ratio (Gross) 82.9% 113.4%
Cost Effective Contribution 23.7% 17.4% Recovery Premium 12.4% n.a. Actual Premium 36.1% 17.4%
Presenter
Presentation Notes
Premie NPR 2005: 27,8% van de pensioengrondslagsom, Omgerekend o,b,v, salarissom komt uit op ongeveer 17,4%,
Premiums NPR 2011
4%
32.1%
2013 Werknemersbijdrage
Werkgeversbijdrage
28,1% Cost Effective Contribution:
23.7%
Recovery Premium:
12.4%
Employee contribution
Employer contribution
APFA’s Financial Position Y/E 2007 Y/E 2008 Y/E 2009 Y/E 2010 Y/E 2011 Y/E 2012 Y/E 2013
Gross FR 97.8% 68.0% 73.9% 81.0% 76.5% 80.1% 82.9%
Net FR 70.6% 76.0% 77.5%
65%
70%
75%
80%
85%
90%
95%
100%
2007 2008 2009 2010 2011 2012 2013
Gross Funding Ratio Net Funding Ratio
Presenter
Presentation Notes
Sherwin, kunnen wij hierin een grafiek maken met daarbij 2011 t/m 2013? De overgang van 2010 naar 1 jan 2011 als ‘break’ aangeven (dus met stippellijn sprong aangeven)
APFA’s Financial Position
What happened?
Financial Crisis 2008 Actuarial Interest Rate
Aging Population
GFR 10%
APFA’s Financial Position
What happened?
Financial Crisis 2008 Actuarial Interest Rate
Aging Population
7% 5.5% 4%
APFA’s Financial Position
What happened?
Financial Crisis 2008 Actuarial Interest Rate
Aging Population
GFR 16%
APFA’s Financial Position
What happened?
Financial Crisis 2008 Actuarial Interest Rate
Aging Population
GFR 4%
January 1, 2011 Net Funding Ratio
NPR 2011
72.5%
Recovery Plan
NPR 2011
Recovery Plan NPR 2011
1. Recovery period 15 years 2. Premiums Pension- & Financing
Agreement December 31, 2010: a. Cost Effective Contribution b. Recovery Premium
3. Execution Agreement July 20, 2012: a. Additional Recovery Premium b. Guarantee to recover according to
Critical Recovery Path
33.1%
3%
Critical Recovery Path NPR 2011 Expected development Funding Ratio
(as per December 31st)
Critical Recovery Path NPR 2011
70%
71%
72%
73%
74%
75%
76%
77%
78%
Jan-11 Dec-11 Dec-12 Mrt-13 Jun-13 Sep-13 Dec-13
Net Funding Ratio Critical Recovery path
77.5%
76.3%
Recovery Plan NPR 2011
● Uncertainty guarantee payments – Total Costs of Recovery – Longevity Risk – Actuarial Interest Rate
● Loss of purchasing power
Distribution guarantee payments
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
2013 2015 2017 2019 2021 2023 2025 2027
75%-95%
50%-75%
25%-50%
5%-25%
Gemiddelde
Maximum
Recovery Plan NPR 2011
● Uncertainty guarantee payments – Total Costs of Recovery – Longevity Risk – Actuarial Interest Rate
● Loss of purchasing power
Longevity Risk
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
2013 2015 2017 2019 2021 2023 2025 2027
75%-95%
50%-75%
25%-50%
5%-25%
Gemiddelde
Maximum
Recovery Plan NPR 2011
● Uncertainty guarantee payments – Total Costs of Recovery – Longevity Risk – Actuarial Interest Rate
● Loss of purchasing power
Actuarial Interest
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
2013 2015 2017 2019 2021 2023 2025 2027
75%-95%
50%-75%
25%-50%
5%-25%
Gemiddelde
Maximum
Rekenrente 3,5% / 5,0%
Recovery Plan NPR 2011
● Uncertainty guarantee payments – Total Costs of Recovery – Longevity Risk – Actuarial Interest Rate
● Loss of purchasing power
Loss of purchasing power
0%
20%
40%
60%
80%
100%
120%
2013 2015 2017 2019 2021 2023 2025 2027
75%-95%
50%-75%
25%-50%
5%-25%
Gemiddelde
Pensioenresultaat
Increase Pension Age
General Old Age Pension (AOV)
Increase Pension Age AOV
Consequences for APFA’s participants
Pension Age = Pension Age AOV
Transitional measures
Gap Pension APFA – AOV
Continuation payment AOV premiums
Adjustment of APFA’s Pension Age
● Value accumulated pension decreases
● Additional recovery NPR 2011
● No Gap Pension APFA – AOV
● Lower recovery costs
● Additional years to accrue pension
Additional pension accrual
Adjustment of APFA’s Pension Age
● Recovery projections – Scenario 1: Current Recovery Plan – Scenario 2: Increase Pension Age NPR
2011
Recovery projection
80
90
100
110
120
130
140
150
70%
75%
80%
85%
90%
95%
100%
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Mill
ions
Funding Ratio Recovery path Funding Ratio Pension age increaseTotal costs Recovery path Total costs Pension age increase
Lessons Learned
● Clear and unambiguous agreements ● Involvement of all parties ● Seek support of specialists ● Fix issues in good times & anticipate ● Pensions = dynamics
Constant Open Discussion and Communication
Thank you
