Execution agreement of PostNL pension arrangement aligned with new Financial Assessment Framework

The Hague – 31 July 2015 - PostNL and Stichting Pensioenfonds PostNL have reached agreement on several adjustments of the execution agreement of the PostNL pension arrangement. These adjustments are a consequence of the implementation of the new Financial Assessment Framework (nieuw Financieel Toetsingskader - nFTK) per 1 January 2015.

Following amendments of the regulations on pensions as laid down in the nFTK, the execution agreement of the PostNL pension arrangement has been adjusted. 

Parties have agreed that the recovery period, relevant for determining the amount and term of the top-up payment obligation of PostNL, will be extended from three to five years. This term corresponds with the recovery period as laid down in the nFTK. The requirement to supplement a deficit will be determined on the basis of the ‘beleidsdekkingsgraad’ (i.e. the 12-months average coverage ratio). When determining any top-up payment obligation, the recovery power of the pension fund will be taken partly into account. The annual top-up payment obligation remains limited to maximum 1.25% of the pension obligation. 

Parties had agreed a conditional budget of €315 million to prevent any discounts over the period 2014-2018. Due to the new legislation, the probability that discounts to the accrued pension entitlements will be necessary before 2020 is very limited. As the result, the budget has been released. 

Effective date of the adjustments of the execution agreement is 1 January 2015.