DENMARK - Pensionskassernes Administration (PKA), Denmark's largest occupational pension fund administrator, will try to persuade members to abandon current guaranteed returns.

PKA, which manages total assets worth DKK 115.1bn (€15.4bn), will contact around 110.000 of its participants from September to get them to opt for a 0% guarantee on their pensions.

It wants to make the umbrella fund, which covers nurses and and seven other occupations, more flexible to counter the threat of rising longevity.

The organisation currently gives guarantees to members up to 4.25%; only members who enrolled since 2006 are automatically on a 0%-rate.

Earlier this week, PKA announced that the number of members over 65 years of age had doubled in the last ten years, with around 10% of the 220,000 members currently above this age.

A spokesman told IPE this means that for some members, the organisation needs to tap into surpluses of the pension fund to prolong the pensions instead of increasing them.

He added that if members, 90% of which are female, opt for a 0%-guarantee, PKA's payout profile will become more generous and more easily adjustable.

The organisation has been working on the project in the last 12 months, and plans to target its members with letters, a new website, meetings with members and a special task force.

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