Dutch pensions provider AGH has been questioned by three clients about its ability to properly manage internal processes after a series of administration problems.
The industry-wide pension funds for butchers (Slagers), the food trade (AVH) and the drinks industry (Dranken) all reported having to carry out additional checks on AGH’s processes.
The issues were highlighted by the schemes’ external auditors tasked with assessing internal processes and controls.
The €725m Dranken scheme said AGH hadn’t checked that annual statements for pensioners contained all the required data. The same applied to communications with new joiners and departing staff.
Dranken also found that the amounts quoted on annual statements were too low, as the figures had been based on 11 months rather than 12.
Although AGH had paid for the necessary corrections, the pension fund said these incidents also caused reputational risk.
John Klijn, chairman of the €2.3bn Slagers scheme, said that its accountant had been forced to check calculations as the bookkeepers had doubts about accuracy.
Klijn suggested that the errors had been caused by AGH’s rapid growth in 2017, when both Slagers and the €272m sector scheme for millers joined, followed by the €813m pension fund for hairdressers earlier this year.
Klijn said that he expected AGH to improve its its performance.
“My impression is that the reporting by AGH is correct, but we have to prove this to supervisor De Nederlandsche Bank,” he said. “Currently, we are checking all processes.”
The €1.3bn AVH said it was worried about the quality of internal processes at AGH, although it did not provide specific examples.
Both AVH and Dranken – founders of AGH – have also objected to the provider’s proposals to amend its articles of association, which would end their right to binding nominations for trustees at AGH.
The court in The Hague has already ruled that AGH must honour AVH’s nomination for two trustees. In another case, Dranken and AGH have asked a Rotterdam court to rule whether the provider was allowed to unilaterally amend its articles of association.
AGH said it was not able to comment on the issues because of the holiday period in the Netherlands.