At the end of September 2008 Delta Lloyd introduced an updated investment offer within the Personal Pension Plan (premium agreement).
At the end of September 2008 Delta Lloyd introduced an updated investment offer within the Personal Pension Plan (premium agreement). This is specifically in the form of three new life cycles: Defensive, Neutral and Offensive. A component of the new Delta Lloyd Life Cycles is the Pension Stabiliser, through which the interest rate risk at the time of purchase of a pension dividend is minimised. Through this Delta Lloyd is offering the employer and employee more freedom of choice and security.
The impetus for the changes in the Personal Pension Plan is the restrictions in the Pension Law for prudent investments. The Financial Markets Authority has stated in its vision: "Prudent investments within premium agreements" that we must move towards so-called pension prudence. The Delta Lloyd Pension Stabiliser fits in with this vision.
How the Pension Stabiliser works
The Pension Stabiliser is a firm component of the Delta Lloyd Life Cycles. During the course of the Life Cycles the investment risk is reduced. From a specific age you are gradually transferred to the Pension Stabiliser also in order to eliminate the interest rate risk. Through this gradual transfer to the Pension Stabiliser the pension is effectively purchased against average market interest rates. The transfer period varies from 10 years (Offensive Life Cycle) to 20 years (Defensive Life Cycle). This applies both to new premium payments and to capital already accrued.
The NPN1 prize
The Delta Lloyd Pension Stabiliser is entered in the competition for the NPN prize in the category of "exceptional contribution to the pension fund sector". With its prizes the NPN pension newsletter is seeking to provide a platform for companies and employees who can serve as examples to other players in the pensions sector.
Greater freedom of choice with the new Life Cycles
The three new Life Cycles are replacing the Enterprising and Cautious Life Cycles. Employers can now offer their employees the following options:
- No investment freedom: every employee invests in the Neutral Life Cycle
- Limited investment freedom: the employee can choose from the three Life Cycles
- Substantial investment freedom: the employee can choose to make their own investments alongside the Life Cycles.
The new standard Life Cycle is the Neutral Life Cycle. If employees want to deviate from this, the Delta Lloyd Profile Indicator (risk profile) must be completed.
Further information can be found at www.ddd.nl/.
-ends-
Further information:
Marijke Peijnenburg
Spokesperson for Delta Lloyd Insurance
Telephone: (020) 594 2939
E-mail: pers@deltalloyd.nl
1 Nederlands Pensioen en Beleggingsnieuws - Dutch Pension and Investment newsletter