Stichting Pensioenfonds PGGM, Zeist, Netherlands, formally separated its asset management and administrative services, according to a news release from the €77 billion ($100 billion) fund. The move paves the way for one of the world's largest pension funds to begin offering its members insurance and other retail products alongside existing pension services as soon as 2008.
In 2005, PGGM was fined an undisclosed amount by the Dutch central bank after selling insurance to its members in violation of regulations for self-administering pension plans. The new organizational structure requires approval of the central bank.
The decision followed "an intensive scenario analysis over the past 18 months," according to the release. "This found there to be a need within the sector for a more integrated package of income products and advisory services."
PGGM spokeswoman Ellen Habermehl could not be reached at press time for further comments.