THE NETHERLANDS - The industry-wide pension fund for the metal and electro-technical engineering, PME, will take over the liabilities of the €820m company scheme VCBV of car producer NedCar, it has announced.
In the transaction, VCBV transfers the pension assets of its 13,500 members to PME, increasing PME's assets to €20.5bn, the industry-wide scheme said.
According to PME, pension fund VCBV could not see a future as an independent scheme. VCBV is also pensions provider for Fauretia Automotive Seating, PDE Automotive, MME Purchase and Brabant Alucast International.
The companies have handed in their exemption from connecting to the mandatory industry-wide scheme PME as of 31 December 2006, PME said.
"This means that they have chosen for the collective pension scheme of the sector. All future pension schemes will be placed with PME," it added.
Because of the considerable difference in coverage ratio between VCVB and PME, NedCar's scheme needs to pay a levy, to prevent a dilution of PME's reserves, PME indicated. VCBV has a coverage ratio of approximately 105%, whilst PME's funding ratio is 127%.
The levy is to be paid by VCVB's affiliated companies and members. The workers and pensioners will be contributing by means of a ceiling in their indexation during the next six years, PME pointed out.
PME said it will leave VCVB's assets under management at Mn Services.
PME manages the pension rights of 660,000 workers and pensioners in its sector, which consists of 1,300 mainly large and average-sized companies.
Meanwhile, Eumedion, the Dutch platform for corporate governance, announced two new members. Asset manager and pensions provider Mn Services and Arcadis Pension Fund have brought the number of associated companies and organisations up to 53, representing assets under management of €900bn in total.