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Dutch roundup: Deutsche Bank, Sanoma, Aegon, Stap

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The €367m Dutch pension fund of Deutsche Bank is to change its pension arrangements from defined benefit to collective defined contribution (CDC) to limit volatility on its balance sheet as a result of the DB plan.

On its website, it said the employer would contribute more than €21.6m as a “dowry”, as well as to pay for transition costs.

Under the new CDC plan, the combined premium would rise from 29.9% to 32.4%, with a ceiling of 33%.

As a consequence of the CDC arrangements, the employer will no longer pay additional contributions.

Because an agreement with the sponsor to invest defensively has also been terminated, the pension fund will be able increase its return portfolio from 15% to 25%.

The €2.9bn pension fund of Delta Lloyd also recently switched its pensions arrangements from DB to CDC, while in recent years the pension funds of asset managers Robeco, ABN Amro, ING and Achmea and merchant bank NIBC have taken similar steps.

In other news, the closed €550m Dutch pension fund of publishing firm Sanoma has decided to transfer the pension rights of 500 pensioners and 3,500 deferred members to the general pension fund (APF) Stap, run by asset manager Aegon and its subsidiary TKP.

Its active participants have been accruing pension rights at the €21.5 Pensioenfonds PGB since last year.

The pension fund is to join a multi-client compartment of Stap, as it had the same views on risk as the Sanoma scheme, with an indexation target of 50%, according to Paul van Driessen, its vice-chair.

Koos Guis, a member of the steering committee for the future of the pension fund, said a joint compartment in the APF would offer the scheme a better perspective, as the number of participants in the closed pension fund is decreasing.

The current funding of the Sanoma scheme is 110.5%.

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    Asset class: All/Large Cap Equities.
    Asset region: Global Developed Markets.
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    Closing date: 2018-09-25.

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