Akzo Nobel Nederland B.V. and Akzo Nobel’s pension fund have received a summons from the Association of Retired Akzo Nobel Employees with regards to the new financing of the company’s Dutch pension scheme.
Although the new pension set-up was agreed by the company and the unions at the end of June 2005, the Association has initiated court proceedings requesting a legal ruling that the new arrangements should not be applied to its members. They are also requesting unconditional indexation for the future and extra indexation which they claim was not forthcoming in 2003.
Under the terms of the agreement with the unions—which was supported by external expert studies—the new financing arrangements replaced the defined benefit scheme with a defined contribution scheme and substantially improved the financial position of the pension fund.
Based on legal advice, Akzo Nobel Nederland and the pension fund have full confidence in a positive outcome of the proceedings.
Furthermore, Akzo Nobel is of the opinion that not only is the new arrangement fair with respect to all participants in the Dutch Pension Fund, but it also serves the continuity of the company in the interests of all employees, both active and retired.