The E2bn multi-employer Vereinigte Pensionskassen (VPK) and the E1.2bn banking and insurance sector pension fund BVP-Pensionskassen have merged.
The funds had raised the idea of merging earlier in the year. They say that due to “historical changes” in the banking sector and the similarities between the two funds a merger would “make sense”.
The E3.2bn merged scheme, renamed VBV-Pensionskasse, becomes the biggest player in the Austrian market with 120,000 active and retired members.
“The decision for the merger has an enormous meaning in view of the awaited international opening up in 2005 in the field of old-age provision,” BVP states, referring to the European pensions directive.
For the time being the two funds will keep their investment strategies more or less separated but things may change, a BVP spokesman says, adding that the two funds would “grow together” through their synergies.