THE NETHERLANDS - Dutch pension giant ABP is to rebrand its insurance arm next year under the name of Loyalis following a ruling that bans Dutch pension funds from offering insurance services.
The new legislation comes into force in January 2002 and governs the link between pension funds and their additional units, which must now be set up separate legal entities.
As of next year all units related to a pension fund, other than those dealing with pensions and investments, must be accommodated in separate division. The ruling affects mainly the larger pension funds in The Netherlands.
According to a spokesman for the Heerlen-based fund, the new legislation seeks “a level playing field between insurance companies and pension funds.”
ABP will also accommodate the reintegration activities and benefits administration division USZO in the new foundation. About 600 of ABP’s 3,800 employees will be relocated to the new business.
Overall, the legislation aims settle the demarcation between pension funds and insurers. The move is expected to have an impact on which kind of defined contribution schemes can be administered by pension funds and which are not permitted.
The Netherlands’ second biggest pension fund, the EUR49bn PGGM, is set to announce the rebranding of its insurance arm, PGGM Verzekeringen, in about two weeks.
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