Achmea Pension & Life Insurance has agreed to assume the pension liabilities of approximately 1,200 members of the Dutch section in the GE European Pension Fund OFP, as part of a pension buyout.

The GE European Pension Fund OFP is a Belgian cross-border pension fund (OFP), which holds the former Dutch pension scheme of GE Artesia Bank and administers the pension scheme for former GE Artesia employees in the Netherlands.

The Dutch section is a closed pension scheme, as GE Artesia has ceased its banking activities in the Netherlands, meaning there are no longer any active members, just former members and pensioners.

When the collective value transfer formally completes and Achmea's takeover becomes effective, a one-off, uniform pension increase will be applied, and subsequently pensions will be adjusted annually based on the European price index.

However, Achmea said certainty on the amount of the one-off pension payment will be determined once the transfer is complete and assured that pensions will be fully guaranteed at Achmea Pension & Life.

The company explained that as the move of the liabilities needs to be carefully managed by all parties involved, the transfer will be reviewed by Dutch regulator, De Nederlandsche Bank (DNB), together with Belgian regulator, the Financial Services and Markets Authority (FSMA).

Commenting on the transaction, Achmea Pension & Life chairman of the Executive Board, Arthur van der Wal, said: “This pension buyout fits in well with our ambition to further expand our position in this market.

“We are grateful to the GE European Pension Fund OFP for the trust they have placed in Achmea. Together with the fund, we are committed to ensuring a careful transfer and a smooth transition for all members.”

Adding to this, OFP Board of Directors chair, Bryan Falato, explained that with the changes to the Dutch pension system, the fund carefully evaluated all long-term solutions that would best serve the interests of its members, including leaving the scheme unchanged.

He said OFP’s evaluation focused on the security of current and future pension benefits, the preservation of purchasing power, the quality of service, and the associated costs. As a result, the OFP decided to transfer the pension liabilities to Achmea Pension & Life.

“This proposed transfer provides members with greater clarity and certainty regarding their pension benefits, combined with a one-off increase and annual unconditional indexation linked to the European inflation index,” Falato said.

“Above all, it is important to us that the transition is carried out with due care and that the interests of all members remain well protected over the long term.”

---