NETHERLANDS - PGGM's board has announced it will split policy-making from administration on 1 January 2008 when it divides into a pension fund and an administrative organisation.
The decision was taken by PGGM’s board of governors on 2 November and has been approved by the PGGM council, which advised the board.
The new pension fund, which will be named Pensioenfonds Zorg en Welzijn (Healthcare and Welfare Sector Pension Fund), will continue to determine pension policy and own the pension assets.
The administrative organisation, which will retain the name PGGM, will be transferred to a cooperative formed by the employers’ and employees’ organisations in the healthcare and welfare sector.
PGGM said the decision represented the culmination of a series of major steps taken by the organisation since 2006, when PGGM first announced its plans, in preparation for the segregation of the two functions, including intensive consultation with the membership in the healthcare and welfare sector.
In August, Global Pensions reported that PGGM had formed a cooperative to take over the administration of the collective pension scheme and offer participants supplementary income products and services. It appointed an executive committee to manage it, headed by chairman Hans Alders.
This follows news from last month by another large Dutch penson fund. ABP announced it would be splitting the fund into two separate components to comply with the recently passed Pensions Act 2007.
The change will see the €200bn fund create a separate administration agency comprising of a holding company, supervisory board and executive board to oversee administration, asset management services and communication.
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