The board of Pension fund Staples has decided not to convert the accrued pensions to a new pension scheme within the Future pensions act. There is no change for both active and retired participants within the fund.
Per the 1st of July 2023 the Future pensions act is in effect. Within the sector employers, labor condition parties and pension providers are in touch with each other about how the pension scheme can be altered to the new pension law. They also check if and how accrued pensions can be transferred to the new pension scheme. This is what we call ‘converting accrued pensions’. Some pension funds can not convert their accrued pensions to the new pension scheme.
No conversion request employer
A request to convert the accrued pensions can only happen through an employer-request. Within the remaining employers Staples Solutions B.V. has indicated that they will not enter this request. Staples Nederland B.V. is declared bankrupt per October 2023. The board of Pension fund Staples (PFS for short) has done their own research, from different angles, to see if converting the accrued pensions is within the interests of the participants. This appears not to be the case.
In the text below we illustrate two important points. We have also discussed our considerations with our Accountability body. They shared our conclusion not to convert the accrued pensions to the new pension scheme. In addition to that we have also discussed our considerations with our supervisor; De Nederlandsche Bank.
Considering legal risks
PFS has emerged from different pension funds of many companies (employers). For each participant of PFS the original, legally valid, (old) employer has to be found to hand over the conversion request within PFS. It is not executable to find all these companies (as far as these still exist because of many fusions and bankruptcies) and the corresponding employership.
The Judicial system Netherlands warns for many legal procedures that may be conducted with a transfer to the new pension scheme. Disputes can, for example, arise over the question of whether converting the accrued pensions is legally valid if the (former) employers have not handed over a conversion request. This conversion request is necessary to convert the accrued pensions to the new pension scheme. This legal risk is for PFS an important factor within the consideration to not convert the accrued pensions.
Financial consequences participants: Prevent double costs
Per the 1st of July 2018 PFS is a closed pension fund. This means that there are no new participants that join FPS and that there is no contribution paid anymore. Although FPS is a closed fund, until this day it appears that the independent continuation of FPS has remained the best option. The board checks if FPS will be liquidated in time, by bringing the accrued pensions elsewhere. With this perspective converting the accrued pensions to the new pension scheme is not likely, because it will bring double costs. De expectation to liquidate the pension fund in the future is also considered in the ‘Handreiking Evenwichtige transitie’ of the Ministry of Social Affairs and Employment as a reason not to convert accrued pensions in the new pension scheme.
Do you have any questions?
Of course we will keep you up to date on the further course of action within FPS. Do you have a question about the information above, or would you like to receive more information? You can send an e-mail to: pensioenservice@pensioenfondsstaples.nl.