NETHERLANDS – PGGM’s new pension fund subsidiary Careon Levensloop has finalised a seven-year outsourcing contract with KAS Bank and Ordina.

The agreement – effective from January 1 2006 – will see Ordina in charge of administrative tasks, while KAS facilitates the associated banking process.

“We will offer products to our clients to enable them to benefit from the new life course plan legislation in the Netherlands,” said Careon Levensloop managing director Paul Schuurkes.

The products will target mainly healthcare and welfare employees, which “will be an excellent supplement to a PGGM pension,” he added.

No Careon Levensloop employees will be affected by the agreement with Ordina – worth an estimated minimum turnover of €5m.

“With this transaction, which is based on BPO service for mutual fund subscription administrations, Ordina assumes a prominent spot in a newly opened market for life course plan products,” said Ordina chief executive officer, Ronald Kasteel.

KAS Bank will support Careon’s life course plan products via its wholesale banking services.

“We adequately respond to important developments in society with respect to individualisation of pensions and introduction of life course plan products to clients of pension funds,” said KAS Bank CEO Albert Röell.

“The co-operation with Careon Levensloop and Ordina underlines the commitment of the bank to the pensions industry through the offering of a combination of compliance-, treasury- and risk management products and services.”

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