The Netherlands’ third-largest pension scheme PMT is planning to move its pension administration from its in-house pension provider MN to PGGM, the provider of the second-largest pension scheme in the country PFZW.

The three firms have signed a memorandum of understanding to move the pension administration of PMT’s 1.4 million members to PGGM by 2024.

The move follows an earlier cooperation between PGGM and MN on the development of a new administration system. In a press release, PMT, PGGM and MN said the transfer of PMT’s pension administration to PGGM is a continuation of this earlier project.

The move will strengthen PGGM’s position as the Netherlands’ second-largest pension asset manager after APG. From 2024, the firm will administer the pensions of five million people.

As part of the move, the pension admin staff of MN, which saw its other main admin client PME leave the organisation in 2021, will move to PGGM.

“It’s a unique step that two large pension administration organisations are joining forces,” commented PMT president Terry Troost, who added that he expects the move to lead to a reduction in costs.

In its annual report published last month, PMT voiced its worries about the rising costs of MN’s pension administration business.

The move of the pension administration to PGGM, and with its 40% of its revenues, means a further marginalisation of MN. The organisation will continue as a €135bn asset manager jointly owned by pension funds PMT (with a 95% stake) and merchant shipping fund Koopvaardij, which is also expected to move its pension administration to PGGM.

The loss of its pension admin business comes shortly after it became clear that MN’s in-house real estate team will also leave the organisation, joining forces with public transport scheme Rail & OV in a new real estate asset manager.

This article appeared originally in Pensioen Pro, IPE’s Dutch sister publication.