The €1.4bn Nedlloyd Pensioenfonds has switched from collective defined contribution (DC) to individual DC pension arrangements for the staff of a number of Netherlands-based companies of Danish Maersk Group.
The pension fund will maintain the pension plan but has outsourced capital accrual to asset manager Robeco, which will invest participants’ pension assets as a default in a life-cycle mix.
Under the new arrangements, pension capital accrued with Robeco can be used for purchasing a pension at the Nedlloyd scheme at or even before the retirement date.
Frans Dooren, director at the pension fund, said: “As a result, the pension rights could increase with future indexation at the pension fund.
“Participants could benefit from the returns of the scheme’s investments in securities after retirement date.”
Meanwhile, harbour tugboat company Svitzer, which started operating in the port of Rotterdam last year, has joined the new pension plan of the Nedlloyd pension fund with its 120 active participants.
Svitzer is also part of Maersk Group, which bought shipping company P&O Nedlloyd in 2005.
However, Maersk company Damco will continue its collective DC plan with the Nedlloyd scheme for its 275 workers for the time being, due to contractual obligations.
He added that he expected Damco employees would also join the new pension plan in the near future.
The Nedlloyd Pensioenfonds reported a 21.8% return for 2014.
Its €640m matching portfolio of government bonds and swaptions returned 35.2%, while its other investments combined returned 11.7%.
Last January, the scheme returned more than 5%.
Its current coverage ratio – drawn on market rates – is 111.6%.
The Nedlloyd Pensioenfonds has 11,695 participants in total, of which 800 are employed by Dutch subsidiaries of Maersk Group.
The scheme has 7,910 pensioners and 2,980 deferred members.