NETHERLANDS - Dutch pensions supervisor De Nederlandsche Bank (DNB) has granted asset manager Robeco a license to operate the new cross-border pension vehicle PPI.

The Premium Pension Institution allows parties other than pension funds and insurers to offer collective defined contribution (DC) plans.

However, a PPI is not allowed to bear insurance risk, and participants must take out a contract with an insurer for the benefits phase.

Robeco said it would focus mainly on Dutch companies with more than 250 employees, but also target companies that want to consolidate in accordance with European standards.

Its PPI has been set up as a foundation - a legal entity without profit motive - to "optimally benefit the collective of employers and employees".

Both employers and employees will be represented on a client's board, tasked with assessing the service provided by the pension vehicle, Robeco said.

It added that it has contracted out the cover of the PPI's insurance risks to insurer Generali, which already covers Robeco's existing DC arrangements.

Robeco has outsourced the administration to Lohoff & Partner, a German company specialising in international participants administration and communication for pension funds.

A spokeswoman for Robeco declined to provide information about expected contracts or whether the company was discussing potential services with foreign parties.

According to Robeco, the investment policy for its PPI will be guided by life cycle investment.

Participants will be allowed to decide on the investment risks they want to take through an online pension tool.

They can also opt for additional certainties, such as the guarantee of the nominal deposit in the payout phase - through an investment or an insurance solution - as well as cover against inflation and interest risk.

In July, DNB issued the first PPI licence to pension provider BeFrank, a joint venture between BinckBank and insurer Delta Lloyd.

Rotterdam-based Robeco offers worldwide investment products and services to institutional and private investors and is managing €150bn of assets.

Topics