NETHERLANDS - Asset manager Syntrus Achmea has been awarded a €700m mandate from foundation FVP, which finances pension insurance for unemployed older workers.
According to Syntrus Achmea, the mandate is temporary, as the FVP scheme will be liquidated in 2013.
Since 1989, the Stichting Financiering Voortzetting Pensioenverzekering has been financially supporting unemployed workers of over 40 who qualified for salary-related unemployment benefits (WW).
However, because the scheme's only income is the returns on its investments, its assets are facing depletion following a strong increase in unemployment last year, an FVP spokesman said.
He said the FVP had already decided to decrease its contributions substantially, as well as to postpone its support for as many as four years for workers who lost their jobs in 2010.
FVP is run by representatives of employers and employees. Up to now, it has been managing its assets itself.
Syntrus Achmea is pension provider for 3.6m workers and pensioners at more than 80 pension funds and manages €57bn of assets.
According to a spokesman for Syntrus Achmea, the new contract will take effect on 1 April 2011.
The asset manager will look after a proper liquidation of the FVP, he said.