NETHERLANDS - The €272bn asset manager and pension provider APG and ABN AMRO Bank have started a joint venture to operate the new pension vehicle Premium Pension Institution (PPI).
Under the name APG-ABN AMRO Pensioen Instelling, both players intend to offer employers defined contribution pension plans for workers who are not accruing pension rights with a pension fund.
By combining the expertise of the largest pension provider in the Netherlands with the bank's extensive network, APG and ABN AMRO said their PPI could offer "cheap but high-quality" pensions.
Hans ten Brinke, spokesman at APG, said APG-ABN AMRO Pensioen Instelling would target the 15% of workers who were accruing their pension with an insurer.
"We will also target the approximately 10% of workers and self-employed who are not accruing any pension at all," he added.
However, Ten Brinke declined to estimate the size of the market, as "this would depend on employers' pension promises", as well as on the desired pension accrual of the individual workers.
APG and ABN AMRO hope to receive a permit for the PPI from supervisor De Nederlandsche Bank (DNB) some time before this autumn and expect have the vehicle up and running by year-end, Ten Brinke said.
He confirmed that APG had a majority stake of 51% in the joint venture.
Recently, the DNB issued the first PPI permit to BeFrank, a joint venture between BinckBank and insurer Delta Lloyd.
DNB is still assessing applications for a PPI of asset manager Robeco and the insurers Aegon, Nationale Nederlanden, BrandNewDay and Generali.