Your pension fund administers your pension, invests your pension savings, pays out your pension benefits and helps you take control over your pension by providing online tools like the Pension Planner. All these services are paid for by your employer.

The social partners (your employer and the trade unions) negotiate and agree upon the conditions of your pension plan. They don’t execute the pension plan, as the pension fund does that. When the pension fund has confirmed that it will be able to administer, fund and communicate the pension plan, the agreement is closed and laid down in an administration agreement. This agreement includes terms regarding the costs of the pension administration. Click here for the current administration agreement.

Scale efficiency
The board bureau of ING CDC Pensioenfonds supports the managing board in the preparation and execution of the pension fund’s policies. The bureau carries out these tasks for NN CDC Pensioenfonds as well, thus realising scale and cost efficiency. Read the interview with John Boers, member of the managing board, for more background information.

Annual report
Every year, the pension fund publishes an annual report which discloses the costs of its administration activities. In keeping with the calculation method prescribed by the Dutch central bank (DNB), these costs are allocated only to the pension fund’s participants and pensioners. Costs are not allocated to former employees of ING who are not yet receiving pension benefits. Due partly to the declining number of participants in recent years, the cost of pension administration has risen.

In EUR x 1,000

                                                                         2017               2016               2015               2014

Summary
With regard to pension costs, these three points are most relevant:

• The costs of pension administration are paid for by your employer.
• Your pension fund discloses the costs of pension administration on its website and in its annual report.
• The pension fund’s managing board is committed to achieving scale and cost efficiency for the fund’s day-to-day operations.