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Philips scheme replaces Aon Hewitt with PGGM as admin provider

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The €17bn Dutch pension fund of electronics giant Philips is to replace its pensions provider Aon Hewitt with PGGM as of 1 January 2016.

In addition to pensions administration management, the new provider will also be tasked with policy and board support, according to PGGM, provider for the €156bn healthcare scheme PFZW.

The current 10-year contract with Aon Hewitt is to expire at the end of 2015, the Philips Pensioenfonds said.

PGGM indicated that the decision of the “leading” Philips Pensioenfonds was an important development in its multi-client strategy in the Dutch pensions market.

Currently, PGGM provides various services to the industry-wide schemes for painters and decorators (Schilders), architects and private security (PPB), as well as the occupational scheme for doctors (SPH).

In a joint venture with Rabobank, PGGM also carries out the administration of a defined contribution vehicle (PPI) for small and average-sized companies.

A spokesman for PGGM said the new contract with the Philips scheme had been concluded for a five-year period.

Jeroen de Munnik, institutional business chief at PGGM, said: “The combination of the company scheme that is known for its innovative approach and our expertise and experience on pensions management and board and policy support will create an excellent cooperation.”

Jasper Kemme, chief executive at the Philips Pensioenfonds, said that, during the selection process, PGGM had shown itself to be a “very skilful and customer-friendly organisation”.

At September-end, the scheme had 102,640 participants in total, including 14,175 employees and 57,320 pensioners.

PGGM carries out the administration for 2.6m participants.

BlackRock has been the pension fund’s asset manager since 2005.

The management of the scheme’s indirect non-listed property was placed with BlackRock in 2013.

A spokeswoman for the pension fund said the scheme’s contract with BlackRock had been concluded for an indefinite period.

Aon Hewitt was unavailable for comment.

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