DEPF manages the pension contributions and makes the pension payments. To ensure that the assets of the pension fund are adequate, both now and in the future, the contribution income is invested as effectively as possible. The Board of Directors has final responsibility, although DEPF outsources some of the tasks.
DEPF outsourced the pension administration for the various sections and the coordination to specialist pension administrator organisations. Pension administration includes, among others, registration of the participants, calculation of the accrued pension entitlements and reserves, and paying out the pensions.
An agreement between the outsourcing partner and DEPF sets out the required service levels required on the various components of pension administration. The pension administrators periodically account for their activities to the Board of Directors of DEPF.
The pension administrator treats all personal data with full confidentiality and the personal data may be used exclusively for administration of the pension scheme. Their administration and implementation of DEPF’s policy is always in full compliance with legislation and regulations, the bye-laws and the pension plan rules.
The administrative systems are separated for each section and, consequently, the schemes are administered at section level. RiskCo administers the sections DuPont Netherlands and Genencor Netherlands from its office in Utrecht, and Aon Belgium administers the section DuPont Belgium from its Diegem office. If you have any questions about your pension scheme, please contact the pension administrator for your section. The contact details are listed on the specific page for the section applicable to you.
Just the employer and employee contributions are not enough to secure payment of pensions, both now and in the future. Some of the pension obligations must be covered with the return on the assets invested. To achieve the required return rate, DEPF invests its capital.
Investing in shares in general results in higher long-term average rates than investing in bonds or savings. However, the value of shares is prone to significant fluctuation. To mitigate such fluctuations, the pension fund is subject to holding mandatory statutory financial reserves. To find a good balance between risks and return, the Board prepared a robust, conservative investment policy. The investment policy indicates how the capital should be allocated to the various asset classes such as shares, bonds and property.
DEPF uses criteria that prevent the fund from investing in certain companies. For example, DEPF does not invest in companies that create controversial weapons. These are weapons of mass destruction, such as nuclear weapons, cluster bombs and landmines. Also, if companies violate human rights and do not change their behavior after entering into a dialogue, we exclude them. Government bonds issued by countries that are subject to a sanction by the United Nations or the European Union are also excluded. This mainly concerns human rights issues and weapons.
In practice, the exclusion list of PFZW, the Dutch pension fund Zorg en Welzijn is used for screening. In case this exclusion list is not public anymore or is no longer reflecting the above principles, an alternative exclusion can be defined by the Board of Directors and agreed with the asset manager.
The current asset manager is DuPont Capital Management. For more information on the investment policy, please refer to DEPF’s annual reports.
It virtually never happens, but just in case, DEPF has a formal procedure in place for processing complaints relating to how DEPF or parties involved do their work. The Complaints Procedure Rules are available for downloading here.