NN Group: Adjustment of pension scheme
29 October 2021
NN's pension scheme will expire at the end of this year. It is not possible to continue the scheme unchanged. That is why I, advocate Inge de Vries, put you a addendum that entails a change in the pension scheme. As this entails a change in the pension scheme, the consent of the members is necessary.
The current pension agreement and the implementation agreement of the NN Pension Plan expire on December 31, 2021. In the past two years, pension accrual has been lower than the target of 1,875%. Effectively, only 2020% has been built up in 1,552 and only 2021% for 1,428.
Because the pension premium for next year is also not sufficient for the ambition of 1,875%, the pension fund does not want to extend the pension scheme unchanged. The pension fund stipulates that the trade unions and the employer agree on a lower ambition. Pension accrual will be 1,5% and the fund wants the same ambition. read here the addendum with a (temporarily) reduced accrual ambition. The premium remains unchanged.
The pension agreement (PO) and administration agreement (UO) will expire at the end of this year. The fund takes the position that with effect from 1 January 2022, with a new CDC pension agreement and new UO, the ambition to build up 1,875% must be reduced. The pension fund is bound by rules and calculates what it can buy in pension for the defined contribution. With a pension premium of 30%, it is no more feasible for the pension fund than an accrual of 1,5%. The pension fund is only prepared to promise an accrual of 1,875% if the premium is increased to 39%. Both employer and employees are not prepared to pay this bill. In the spring survey about the difficult collective labor agreement negotiations, the majority of members already indicated that they could only agree to a very small premium increase.
De Unie and NN therefore opt for extending the pension agreement at an unchanged premium with a temporarily lower accrual percentage. Because new legislation is coming that will lead to a new pension scheme, we opt for a pragmatic solution. The proposal is therefore to enter into the PO and the associated UO for a period of 9 months (from January 1, 2022 to September 30, 2022), at an unchanged premium, with a reduced ambition of 1,5%.
We have expressly stipulated at NN that on October 1, 2022, work will resume with an ambition level of 1,875%. This agreement is laid down in the addendum. With this agreement we guarantee that the deterioration that we now have to agree on for 9 months will have no effect on the negotiations about the new pension scheme.
In negotiations about changing the nature of the pension scheme from a benefit agreement to a contribution agreement after October 1, 2022, trade unions and NN (social partners) intend to restore the ambition of 1,875% accrual. If the social partners do not reach agreement on a contribution agreement after 1 October 2022, this addendum will lapse and the agreements from the current pension agreement will be revived.
Because a change in the ambition level means a change in the pension agreement, we present this to the members. 's advice De Unie is to agree to this. Trade unions and the employer have reached this result in close consultation.
Members have been invited to vote. On November 12, makes De Unie announced the result.
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