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Dutch glass-makers' scheme to merge with €16bn industry-wide pension fund

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SPVG, the €375m pension fund for glass manufacturers in the Netherlands, has said it will liquidate itself and join PGB, the €16.3bn industry-wide pension fund for the Dutch graphics, packaging and process industry. 

The pension fund is still waiting for the DNB – the pensions regulator – to pay damages for lost returns after the watchdog forced SPVG to offload its gold holdings.

The pension fund filed an €11m claim for compensation against the DNB after the regulator was adjudged to have wrongly ordered the scheme to slash its gold allocation from 13% to 3%.

The pension fund’s decision to pursue compensation followed the rejection of the DNB’s appeal against the verdict of the Rotterdam court.

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The court had ruled that the watchdog’s reasoning in the case had been “unacceptable”.

Although the DNB has not yet paid, SPVG has already factored in the €9.5m into its assets.

Meanwhile, SPVG’s employer, O-I Netherlands, is to provide an additional contribution of €4m to facilitate the transfer of pension rights, which is to take effect on 1 October.

Last year, the company contributed an additional €7.5m to limit a necessary rights discount of 6.1% to 4.6% for the more than 3,000 predominantly older participants.

The pension fund said its employer had made the newest additional contribution conditional to a merger with PGB, which is expected to implement the pension arrangements against much lower costs.

Last year, SPVG lost 11.2% on its investments as a consequence of the effect of increasing interest rates on its large fixed income allocation.

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