Dutch KPN pledges €120m for pensions
NETHERLANDS - The Dutch telecoms giant KPN today said the cover ratio of its €430m pension fund dropped to 94% by the end of last year, requiring the corporation to inject around €120m into its fund over the course of this year.
Presenting its results for 2008, the company said it had remained largely untouched by the economic downturn, though added its pension fund, managed by TKP, had suffered so its cover ratio fell from 137.8% at the end of 2007 to 94% by the end of 2008.
A spokesman for KPN told IPE the company did not expect the DNB or ministry of social affairs to give pension funds extra time to recover, so it will set aside €120m this year to comply with the required recovery plan of three years.
KPN added in today's annual results it had sold around €180m worth of real estate in 2008, though the sale went slower than KPN had expected at the beginning of the year.
The KPN pension fund decided earlier this month not to index its pensions in 2009.
SNS Securities warned late last year that listed companies with defined benefit pension arrangements would have to fork out millions of euros to make up for the present shortfall of their company schemes. (See earlier IPE story: Listed firms may need to plug deficits)
Dutch printer manufacturer Océ said earlier this month it will increase the cash contribution to its ailing Dutch pension fund. (See earlier IPE story: Ailing printer manufacturer to top up pension)
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