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When deciding whether to increase pensions, the board looks at changes in the consumer price index (the CPI) as determined by CBS. For supplement plan 1, this is the regular CPI. This price index tracks, among other things, price increases in food, clothing, housing and transportation and supplemental health insurance including price increases in VAT, excise taxes and subsidies.
For payment schemes 2 and 3, the CPI derived applies. This price index tracks, among other things, price increases in food, clothing, housing and transportation and supplemental health insurance, but excludes price increases in VAT, excise taxes and subsidies.