The €420m pension fund of cement manufacturer ENCI and affiliated companies has decided to liquidate itself and transfer existing pension rights to insurer Nationale Nederlanden (NN).
In addition, it has concluded a defined contribution pension plan with NN for further pensions accrual for its active participants.
The insurer has guaranteed the transferred pension rights and is likely to top them up with a “limited” one-off indexation, the pension fund added.
At November-end, the pension fund’s coverage ratio was 104.7%.
According to Arian Verhagen, the scheme’s chairman, NN had come up with the best proposition.
“The insurer not only scored well on price but also on administration, communication and implementation,” he said.
For the collective value transfer, the Stichting Pensioenfonds ENCI has been supported by consultant Towers Watson.
The ENCI pension has 2,200 participants and pensioners.
In other news, watchdog De Nederlandsche Bank (DNB) has issued the €669m pension fund for Alcatel Lucent with a €5,000 fine for twice submitting financial statements too late.
In August, it missed a deadline for a quarterly statement by four days, after submitting another statement two weeks too late earlier in 2014.
Although the basic fine for the violations is €500,000, DNB said it had taken the seriousness of the violation, the degree of culpability and the scheme’s financial position into account.
At November-end, its coverage ratio was 99.7%.
In its defence, the pension fund said its custodian had submitted the financial figures too late.
In addition, it said its investment report had been delayed by an “insufficiently settled staff” and the holiday of an external party.
However, in the opinion of DNB, the pensions provider remains responsible for outsourced activities.
In recent months, the regulator has fined several pension funds for similar violations, after announcing that it would “get tough” on meeting deadlines.
No comments yet