Fernand Grulms, chief economist at the Luxembourg Bankers Association, has left to become general manager of Pecoma International, a new pensions consulting company. Pecoma, or Pensions Consulting and Management, is an equally owned joint venture between La Luxembourgeoise, Luxembourg’s largest life insurer, Banque et Caisse d’Epargne de l’Etat and Compagnie Fiduciaire, an accounting and tax adviser.
Thanks to the sponsorship of the shareholders Pecoma will provide an all-in package offering services associated with pension fund management including actuarial work, asset management, custodial work, tax advice. Target market is small and medium-sized companies rather than larger companies that tend to employ individual advisors. “The all-in package probably fits them better,” says Grulms.
Initially most of the business will be subcontracted to the shareholders. Banque d’Epargne will offer custody and asset management, Lumembourgeoise actuarial work and tax advice. Luxembourg authorities have registered Pecoma and it starts marketing at the beginning of September. Pecoma is looking for an assistant for Grulms and once business picks up the consultancy will grow to about 10 employees in four years.
New legislation introduced last June relating to second pillar pension funds inspired Pecoma’s creation. The laws outlined a framework for pensions in Luxembourg and encouraged local and foreign promoters to set up a pensions vehicle. “The idea was to put together in one structure the knowledge of the three shareholder to provide services to companies in Luxembourg and abroad that wish to use this new pension fund vehicle,” says Grulms.