Despite tough competition, Aegon was awarded the largest ever Dutch pension buyout deal to date, with approximately €950 million of invested assets.
Executives at the General Mine Workers Funds Foundation (Stichting Algemeen Mijnwerkersfonds – AMF) and the Officials Funds Foundation Mine Company (Stichting Beambtenfonds Mijnbedrijf – BFM) were supported by independent consultants, Towers Watson, who negotiated on their behalf.
The decision to sell was taken due to a steady decline in the the number of members. Higher financial buffers for pension funds and tightening requirements by supervisory authorities were also contributory factors. Following the move the funds will be wound up.
As part of the agreement, AMF secured an increase of more than 8% to participants' pensions, effective January 2015. For BFM participants, the increase will be 10% due to a prior reduction of 7.6%. Participants will not be eligible for annual index-linked increases. The deal has, however, secured the pensions of the 28,000 members for the future.
As part of the agreement, pensions administrator AZL – originally established specifically for these funds – will continue to administer the pension rights for at least eight years. Aegon is pleased to support this trusted provider and help protect jobs in Limburg.
The agreement is subject to approval by the Dutch financial regulator, De Nederlandsche Bank.
