Sections

Unilever scheme grants 4% indexation

Related images

  • Unilever scheme grants 4% indexation

NETHERLANDS - Progress, the €4bn pension fund of Unilever Netherlands, has granted its active participants an indexation of 4.03% over 2007.

Compensation for inflation is based on the salary rises, as agreed in the collective labour agreement (CAO), the scheme said.

The indexation applies to the pension rights of all workers born before 1950 who are on average salary arrangements, Progress made clear.

As agreed with the unions, the indexation is unconditional until 2013, and therefore not dependent on the scheme's financial position, according to the pension fund.

Conditional indexation only applies to the pension build-up for the salary part of over €67,500, and depends on Progress' returns during the past five years.

However, because both the scheme's financial position and returns are sufficient, the unconditional part will also be indexed by 4.03%, it pointed out.

Progress changed its final salary scheme last year to average salary arrangements.

As a result, all workers started paying pension contributions, amounting to a half percent of their salary between €12,209 and €58,993. The 1%-contribution over any salary over this limit was kept unchanged.

The Unilever scheme has almost 25,700 participants in total and its coverage ratio was 155% at the end of 2006.

If you have any comments you would like to add to this or any other story, contact Julie Henderson on + 44 (0)20 7261 4602 or email julie.henderson@ipe.com

Have your say

You must sign in to make a comment

IPE QUEST

Your first step in manager selection...

IPE Quest is a manager search facility that connects institutional investors and asset managers.

  • QN-2444

    Asset class: Trade Finance.
    Asset region: Global.
    Size: USD 10m.
    Closing date: 2018-06-25.

  • QN-2452

    Asset class: Hard Currency.
    Asset region: Emerging markets.
    Size: USD 300 mil..
    Closing date: 2018-06-22.

Begin Your Search Here