The Dutch occupational scheme for marine pilots is seeking a new administrator after PGGM said it would not extend its contract beyond 2020.
The €899m scheme, Loodsen, told members that PGGM cancelled the deal because it had not succeeded in attracting enough other occupational schemes to give it the benefit of scale.
The provider confirmed to IPE’s sister publication Pensioen Pro that it could not offer sufficient benefits of scale to the pension scheme as its growth strategy – formulated in 2014 – had failed to meet its target.
Since 2014, PGGM has facilitated regular consultations between 10 occupational schemes, including the pension funds for pharmacists (SPOA), notaries (Notariaat) and medical consultants (SPMS), without results.
A PGGM spokesman said that the provider’s ambition to attract new customers would not be put on ice, but emphasised that future relationships must have mutual benefits of scale.
PGGM said the decision not to extend the contract with Loodsen would not have consequences for another administration client, the €10.4bn occupational pension fund for general practitioners (SPH).
SPH also said that it didn’t see a reason why PGGM would cease its services the scheme.
PGGM compensates Loodsen for admin errors
The pilots’ scheme cited a few incidents with PGGM’s administration, involving mistakes in uniform pensions statements last year.
According to Loodsen, a check of the rectified errors, supervised by KPMG and PGGM’s internal audit, had revealed a number of new faults, leading to another new check this year.
Loodsen said that the additional workload at the scheme as a result of the errors had been financially compensated by PGGM.
Loodsen said it would move its board support to pensions provider MN next year, in part because it already works with the €3.8bn pension fund for the merchant navy (Koopvaardij).
Rajesh Grobbe would become director of its new administrative office, joining from Koopvaardij, the scheme added.
Loodsen, which had been a client of PGGM since 2015, has almost 700 active participants. It has outsourced its asset management to Robeco Institutional Asset Management (RIAM).