The Dutch Central Bank (DNB, ‘De Nederlandsche Bank’) has informed both Imtech and Smit that, following the letter of Minister Donner, the implementation of a potential reduction in pension entitlements must be accelerated. The coverage ratio of both Smit Pension fund Foundation and the Pension Fund Imtech are below the required 96.75%.
According to the recovery plan submitted to DNB, which specifies a target coverage ratio of 105% at the end of 2013, the coverage ratio of Pension Fund Imtech should have been 96.75% as of 30 June 2010. At the aforesaid date, however, Pension Fund Imtech’s estimated quarterly coverage ratio was 96.40%.
Approximately 3775 Members Affected
Imtech N.V. has approximately 7,300 employees in the Netherlands. Approximately 5,500 individuals of them are insured with the Pension Fund for the Engineering, Mechanical and Electric Contracting Sector (PMT, ‘Bedrijfstakpensioenfonds Metaal en Technische bedrijfstakken’). In addition to the remaining 1,870 active employees, Pension Fund Imtech has 770 deferred members (so-called sleepers), and 1,135 retirees.
Pension Fund Imtech’s board will assess the new situation and decide on any measures rendered necessary.
Shortage of 28 Million Euros
The Smit Pension fund had a coverage ratio of 86.6% on 31 July 2010. The board of the Pension fund has calculated that this amounts to a shortage of approximately € 28 million. There is no legal requirement to fund the shortage and the measures to improve the financial position will not have an effect on the Boskalis full year earnings. Boskalis was aware of the financial position of the fund when it acquired the company.
The size of the SMIT Pension fund is approximately € 200 million with slightly more than 2,100 participants of which 365 in active service. The SMIT Pension fund informed her members this week on the current state of affairs.
