first_imgThe proposed transfer of pension rights from the closed pension fund of temporary employment agency Randstad to ABN Amro Pensions has been abandoned due to the former’s low coverage ratio.The €1bn Randstad gave participating workers the option of transferring their existing rights – accrued under collective defined contribution (DC) arrangements – to ABN Amro Pensions. This came on the back of the employer’s decision to shift pensions accrual to the PPI DC vehicle – run jointly by ABN Amro and APG – as of 1 July.However, the pension fund’s coverage ratio of 98.6%, as of the end of October, fell short of the 100% required for a value transfer, as dictated by regulator De Nederlandsche Bank (DNB). According to Ronald Ganzeboom, the scheme’s deputy director, Randstad met the regulator’s other requirement – that no more than €100m be transferred “to protect” a scheme’s remaining participants.Ganzeboom added that one-third of the scheme’s 4,500 active participants opted for value transfer.The pension fund’s board was unable to confirm whether there would be another opportunity for a value transfer, adding that any future decision would depend in part on the development of the funding ratio.Ganzeboom, however, stressed that the offer had been a “one-off”. He pointed out that any new offer would entail an extensive administrative process, as well as require regulatory approval.“Moreover,” he added, “on 1 January, the pension fund will change its current board, with equal representation for a new and independent one, which is to assess the scheme’s future as well.”The pension fund previously stated that, despite being a closed scheme, it had the necessary scale and a sufficiently young population to continue independently.The Randstad Pensioenfonds has approximately 16,000 participants, of which 560 are pensioners.Last year, it returned 34% on investments.last_img

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