The €630m Dutch pension fund VNU said it will transfer all its pension assets and accrued pension rights to insurer Aegon in a buyout, adding that it will liquidate subsequently.
It said this way it wanted to secure accrued pension rights as well as inflation compensation for its approximately 5,200 workers, deferred participants and pensioners.
VNU, the pension fund of publishing company Nielsen, had already placed €440m of its liabilities with Aegon, but still paid inflation compensation from its remaining assets.
On its website, it explained that there is a possibility that it will not be able to keep on granting indexation, and that a buyout will eliminate this risk. Since 2009, the scheme could not pay full indexation during a couple of years.
The scheme added that, by joining Aegon, it would also avoid a situation in which it can no longer find capable board members.
At Aegon, all participants and pensioners will receive an inflation compensation based on the European consumer index.
As the pension fund’s coverage ratio stood at 127.4% at the end of September, the scheme had sufficient assets to also grant part of the indexation in arrears.
The pension fund’s active participants continue to accrue new pensions rights with another provider as of 1 January.
The scheme nor the employer could be contacted for further details.