mast image

Special Report

Impact investing


Dutch Total fund drops postponed indexation

Related images

  • Dutch Total fund drops postponed indexation

NETHERLANDS - The €270m Dutch pension fund of the energy company Total is to abandon its ambition to grant delayed indexation as part of an extensive overhaul of its retirement arrangements.

Instead, Total Pensioenfonds Nederland may grant additional indexation once the scheme's financial buffers have recovered, it said.

The scheme added that its ambition for the regular indexation - depending on the yearly return on investments - was now 25% of the general salary index at its Zeeland Refinery, and would apply to all its 1,300 participants.

The fund said it also intended to replace its final salary arrangement with a career average scheme.


Additionally, it intended to raise contributions by 8.2 percentage points to 30.9% of the pensionable salary, with the employer raising its contribution to 23.2%.

Total Pensioenfonds Nederland also said that any surplus contribution would be deposited for its active participants, rather than be added to the general reserves for indexation.

Currently, the Total pension fund has a funding shortfall of 6.5 percentage points, and is implementing a recovery plan to improve its coverage ratio to the required minimum of 104.2% by the end of 2013.

If the scheme's financial position has not improved by the end of 2012, it expected to cut pension rights by 2.2%.

However, it stressed that its plan to change its pension arrangements was entirely separate from its recovery efforts.

The pension fund's participants will decide on the proposed pension arrangements in a ballot set to take place this month.



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-2558

    Asset class: Private Equity.
    Asset region: Global or Swiss.
    Size: USD $5-10m.
    Closing date: 2019-08-20.

  • QN-2559

    Asset class: Multi Assets.
    Asset region: -.
    Size: EUR 15m (may be split into two mandates EUR 7.5m).
    Closing date: 2019-09-06.

  • QN-2560

    Asset class: Private Equity.
    Asset region: Global.
    Size: $40m.
    Closing date: 2019-08-30.

  • QN-2561

    Asset class: Infrastructure.
    Asset region: Global.
    Size: $40m.
    Closing date: 2019-08-30.

Begin Your Search Here