The future of the fund is one of the most important issues facing the fund. As in previous years, the future of our pension fund receives special attention and developments are closely monitored.
Since 1 July 2023, the Future of Pensions Act has been in force. In the sector, employers, trade unions or works councils and pension providers are discussing how to adapt pension schemes to the new law. They are also looking at whether and how existing pensions can be converted to the new pension scheme. We call this ‘embedding’. For all funds, any new pension scheme must be in place by 1 January 2028 at the latest.
The board of Stichting Pensioenfonds Staples has decided not to sail the pensions into a new pension scheme under the Future Pensions Act. So for our members and pensioners, nothing will change.
From various angles, it has been investigated whether sailing in is in the interest of the members. This appears not to be the case. The considerations for not folding in have been discussed with our Accountability Body and with our regulator, De Nederlandsche Bank.
When making future choices, the pension fund board's focus is on what is most beneficial for the pension fund's members. In doing so, we also consider the vulnerability of our fund, based on the rules set out by De Nederlandsche Bank for this purpose.On Aug. 9, the board decided to begin an exploration of a possible switch to an insurer, after a number of other forms of implementation were found to be less attractive. Over the past period, it has met with several insurers for this purpose. The board recently made a decision to dissolve the Staples Pension Fund (SPS). In doing so, the intention is indeed to transfer the pensions to an insurer.
The board asked the Accountability Body (VO) for its advice. The VO gave a positive advice for the transfer to an insurer. The board then reported the intention to De Nederlandsche Bank (DNB), including an extensive file with a justification of the intention. DNB has three months to review our proposed decision. The board expects DNB's response in the spring.
In 2024, the board examined extensively whether a transfer to another pension administrator would offer a better prospect of continuing to increase your pension in the future. After careful investigation, the board concluded that transferring to an insurer would be the best solution. The Accountability Body was involved and advised positively on this step.
This is not yet known exactly.
The board decides to liquidate Stichting Pensioenfonds Staples and a collective value transfer (CWO) to an insurer (buy-out) on the basis of Article 84 Pw, under the suspensive conditions that DNB does not impose a ban and that a minimum supplement of the HICPxT can be purchased at the buy-out.
If DNB has no objection, the board can choose an insurer and make the transfer. The transfer is scheduled to take place in July, but could be later.
Staples Pension Fund will be dissolved after its transfer to the insurer. The regulator, De Nederlandsche Bank, controls the strict procedure for dissolving a pension fund. Naturally, we follow this procedure.
The fund continues to exist until all its (pension) obligations have been settled and the fund has received a letter from DNB indicating that supervision has ended. Then the pension fund can permanently deregister after all other obligations have been fulfilled at the Chamber of Commerce.
The settlement will then take at least six months, but it can also take up to a year. You don't notice much of this. This is a task for the board.
Insurers can keep costs per participant lower because they handle the administration for many more participants at the same time.
This is not known at this time. If the Dutch Central Bank does not object to dissolving the pension fund and transferring it to an insurer, the board will choose the insurer that best meets the conditions set.
The annual increase we can agree for you partly depends on the coverage ratio of the pension fund on the date the contract with the insurer was signed. This percentage will therefore not be known until later when the final agreement with the insurer is made.
The insurer's increases follow European prices. These prices differ slightly from Dutch price increases. Usually the prices rise, but it there can also be a price decrease in a certain year. In that case there is no increase and the price decrease is settled with the next increase. Reducing pensions never happens according to the agreement with the insurer.
With Dutch insurers you can only buy an increase based on European price increases. These are generally quite similar to Dutch price increases, but there can be differences. Both upward and downward.
Since 2014, the Future Committee has been actively addressing the issues surrounding the future of the pension fund and advising the board on how to address them. The developments and preparations surrounding the eventual transition to an insurer are also included in these opinions.
The fact that no further contributions came in since 2018 has had little influence on the financial position. Due to the small number of active participants and the policy regarding contributions, the impact of the contributions paid was already minimal on the financial development of the fund. The disappearance of contributions practically didn't change anything in the financial situation of the fund. The administrative costs will be watched closely by the board.
In the fact sheet, DNB cites examples relating to:
- Qualified people for government and other organs
- Cost provision for paying the administrative costs
- Investment risks that are not appropriate to the changing liabilities
- Prospect of (future) options for a transfer
- Capacity to address actuarial risks independantly
- Communication with participants
- Balance between the management environment and the complexity of the investment portfolio
Closed pension funds are expected to conduct research on the future of the pension fund, examining alternatives for its continued existence. And that such a study be repeated on a regular basis. It is important to examine how long it is appropriate and beneficial for the pension fund to continue to exist. This involves balancing interests and considering the specific risks for a closed fund. Particularly because of the possibility of increasing pensions in the future, continuing the pension fund has so far been the most optimal solution.
If the financial position of the pension fund changes and/or there are better alternatives in the market, another administration can of course be considered. In 2024, the board investigated extensively whether a transfer to another pension administrator would offer a better prospect of continuing to increase your pension in the future. After careful investigation, the board concluded that transferring to an insurer would be the best solution.
The board therefore decided to dissolve the fund, after which all pension entitlements and rights can be transferred to an insurer according to article 84 Pw. An application for this was submitted to De Nederlandsche Bank on January 24, 2025.
Staples is bankrupt and has no ties to the pension fund. The pension fund is an independent entity. Shareholders of Staples cannot dispose of assets or entitlements managed by the fund in any way.
If the Pension Fund ceases to exist, the pensions accrued with the Pension Fund have to be transferred to a different pension administrator. That can be a different pension fund or an insurer. The decision-making process and the transfer procedure to be followed are stipulated in the Netherlands Pensions Act (Pensioenwet), which is regulated by the DNB.
The relevant risks that could affect the vulnerability of the pension fund have been translated into a – so-called – vulnerability matrix. The Future Committee and the Board uses the vulnerability matrix to evaluate regularly whether the best solution for all stakeholders is to continue as an independent pension fund and/or whether another form needs to be chosen.
Absolutely. The executive board of the foundations has set realistic requirements and the employer has agreed to them.
The board regularly conducts a comprehensive future analysis, and the outcome of this analysis has so far been that the fund could continue on its current footing until 2029 at the latest. Based on the latest information and developments in the financial markets, the board now believes that a transition to an insurer would be best for our participants in the short term. This is also supported by the positive opinion of the Accountability Body.
We will regularly inform our participants about further developments regarding the future of our fund. Our website always contains the latest news. Furthermore, we inform you through our digital newsletter. Do you not yet receive this newsletter? Then provide us with your e-mail address in MyStaplesPension and sign up.