PMT, PGGM and MN in the Netherlands are investigating the possibility of a joint pension management company, they have announced in a statement.

In this context, pension fund PMT would shift its mandate for pension administration for more than 1.4 million members to a joint organisation within PGGM pension management.

The collaborators emphasised that the plans had no consequences for the investment mandates that have been deposited with MN Asset Management.

They stated that the plan for an integrated pension management organisation would meet the strategic aims for both administration organisations to achieve economies of scale for their clients.

For the pension funds involved, this is expected to lead to lower costs per member, and scope for investments in innovation to service members and employers.

The consideration for the merger of pension management activities follows the previously initiated joint development of an administration platform for pension management.

Furthermore, PGGM’s MAP system is being made suitable for the pension administration of PMT and Bpf Koopvaardij.

The next step is to transfer PMT’s pension administration to PGGM pensioenbeheer.

MN staff who manage this administration will join the integrated pension management company, which will have two location, in Zeist and The Hague.

The parties involved are discussing how the collaboration can be shaped from 2024 onwards and a Memorandum of Understanding has been drafted for this purpose, which was signed on 8 May.

This should lead to final contractual agreements later this year.

"It is a unique step that two large pension administration organisations
are joining forces for pension administration,” commented PMT employer chair, Terry Troost.

“The mandate for asset management remains with MN. It is very important to PMT that the service to our participants and employers is optimal, both in terms of quality as well as cost control.

“We are convinced that PMT will benefit from this in this new situation. That is why we are enthusiastic about this collaboration and we look to the future with confidence."

MN CEO, Frits van Bruggen, added: "This step in the collaboration with PGGM is in line with MN's strategic agenda, which was drawn up last autumn.

“We have been building the MAP platform together since 2021 for current pension management. Together with PMT, we are now taking the next important step in the preparations for the introduction of the Future Pensions Act.

“Ultimately, the collaboration with PGGM will lead to economies of scale and cost control, and we will be able to serve our participants and employers even better in the future."

PGGM CEO, Edwin Velzel, concluded: "PGGM is well on track to introduce the new pension contract for our existing customers in 2026.

“The increased strength of the combination with MN reinforces our ambition to be a leading party in excellent customer service.

“This is therefore a major strategic step for us. By offering a future-proof solution for PMT, in addition to our existing services to PFZW, Bpf Schilders and Stipp, we are positioning ourselves as an important player in the Dutch pension management market, where PGGM will administer more than five million pensions."

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