Dutch Co-op scheme benefits boosted by merger

Related Categories

The €256m Dutch pension fund of Co-op supermarkets is to liquidate and place its pension arrangements with Levensmiddelen, the €5.1bn sector scheme for the foodstuffs sector.

As funding of the Co-op scheme is much higher than that of Levensmiddelen, its participants will get financially compensated during the coming years, according to a document on the supermarket group’s website.

It explained that the collective labour agreement (CAO) between employer and workers for the supermarket chain prescribed the pension fund to join the industry-wide scheme in case of liquidation.

The Co-op scheme closed the year 2016 with a funding of 112.4%, whereas the much larger sector pension fund’s coverage stood at 95.9% at year-end.

The participants of the Co-op pension fund will get compensated for the difference through an indexation in arrears of 1.45% over 2016, as well as an annual indexation of 3% as long as the transition surplus exists.

In addition, their annual pensions accrual will be increased from 1.64% of their salary to the tax-facilitated maximum of 1.875%, according to the pension fund.

However, as part of the transition, the maximum salary subject to pensions accrual at Levensmiddelen is to be reduced from the legal maximum of €101,519 to €53,701.

In 2015, the Co-op pension fund placed its pensions provision with Syntrus Achmea, which is also the provider for Levensmiddelen.

The latter scheme, however, has indicated that it wanted to switch to AZL – part of NN Group – following Syntrus Achmea’s announcement last year that it would stop serving industry-wide pension funds within two years.

The Co-op pension fund has 7,000 participants in total.

Have your say

You must sign in to make a comment


Your first step in manager selection...

IPE Quest is a manager search facility that connects institutional investors and asset managers.

  • QN-2563

    Asset class: Mid & Small Cap Equities.
    Asset region: Global.
    Size: USD $130m.
    Closing date: 2019-09-27.

  • QN-2564

    Asset class: Large Cap Growth Equities.
    Asset region: Global Developed Markets.
    Size: USD $130m.
    Closing date: 2019-10-04.

  • DS-2567

    Closing date: 2019-10-02.

  • QN-2569

    Asset class: Local Currency Bonds.
    Asset region: Global Emerging Markets.
    Size: $500m.
    Closing date: 2019-10-10.

Begin Your Search Here