Dutch drinks sector scheme to merge with €20bn retail fund
The €738m Dutch pension fund for the drinks sector – Dranken – plans to merge with the €20bn fund for the retail industry next year.
On its website, the scheme explained that pensions accrual could be more effective and cheaper as part of Detailhandel.
Dranken has more than 21,000 members affiliated with 300 employers, whereas Detailhandel has 1.1m participants in total.
Last year, the industry-wide schemes for furnishing (Wonen), shoemakers (Schoenmakerij) and the textile wholesale sector (Textielgroothandel) all joined Detailhandel. The €329m sector scheme for the leather industry also plans to join next year.
Last year, Dranken reported asset management costs of 0.25% and administration costs of €207 per participant, which compared to 0.17% and €76, respectively, at Detailhandel.
Pension contributions amounted to 27% of salary at Dranken, and 21.6% at the larger scheme.
Dranken indicated that, given the difference in funding, there was a reasonable chance of a one-off pensions increase for its participants as a result of the merger.
At July-end, its funding stood at 115.4%, whereas Detailhandel’s coverage was 111.4%.