PGGM As The New Admin Provider For Philips Scheme
Philips replaced Aon Hewitt and hired PGGM as their new pension provider. PGGM is the pension provider of many from painters and decorators to doctors.
Philips, the electronic giant, current Dutch pension fund is at €17 billion and handled by Aon Hewitt, the provider of the company’s pension. This coming January of the year 2016, Aon Hewitt will be no longer handling the company’s pension and it will be transferred to PGGM.
PGGM, the new provider of Philips, will not only be handling the management of pension administration but they will also be assigned with the policy and necessary board support. PGGM is also the pension provider for PFZW which has a €156 billion healthcare scheme.
Philips contract with Aon Hewitt, which has been going on for 10 years, will expire when this year 2015 ends. The company’s decision to change pension provider is one key factor in order for them to start their new multi-client strategy that will be introduced in the Dutch market for pensions.
PGGM is currently active in providing pension services to different schemes that are available in various industries such as Schilders which are focused on painters and decorators, PPB for private security and architects and also SPH which is a scheme for doctors. PGGM is also in an alliance with Rabobank in order to provide companies, small and average ones, the administration needed for a certain contribution vehicle.
A representative from PGGM revealed that their contract with Philips scheme will last for five years. Munnik of PGGM declared that cooperation will be fully developed through a combination of tactics that will utilize innovative approach, the company’s expertise and their experience on things like the management of pensions and support for board and policy.
While Kemme of Philips revelead that during the choosing stage, the pension provider PGGM has exhibit an organisation that is full of skills and customer friendly.
When September ended last year, the scheme already has 102,640 total participants. The participants are a combination of employees (14,175) and pensioners (57,320). As of today, PGGM is responsible for the administration of a total of 2.6 million number of participants.
BlackRock, the asset manager of the pension fund, has been in the position since 2005. BlackRock was also responsible for managing the indirect property which are not listed since it was handed to them last 2013. The pension fund also reveals that BlackRock’s contract with the scheme is suspended indefinitely.