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Barnett Waddingham
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Exploring DB schemes internationally: Dutch companies with UK schemes

Published by Andrew Vaughan on

This survey relates to Dutch companies, almost all of which are constituents of the AEX index, that have UK subsidiary companies with defined benefit (DB) pension schemes.

The survey covers 12 Dutch companies with around £48.8bn of UK pension liabilities between them.

Our report analyses the contributions paid, levels of deficit and levels of risk within the schemes. Data has been taken from the latest available financial statements of the UK subsidiary companies, which are as of 31 December 2016 in most cases. Although the companies are not named directly within this survey, they are represented by the same number in each chart throughout.

key findings

37%

average scheme deficit as a proportion of shareholder funds

44%

average UK DB liabilities as a proportion of global DB liabilities

33%

average UK DB company contributions as a proportion of global DB company contributions

Our survey reveals that UK DB pensions may be making a disproportionally large impact on the performance of the Dutch parent company. Indeed, although UK companies produce on average only 7% of the global revenue, they account for 44% of the global pension scheme liabilities and 33% of the global pension scheme contributions.

“The parent companies in our survey, leading players in their respective industries, continue to be impacted by rising pension costs in their UK subsidiaries. In light of the increase in the UK subsidiaries combined deficit, I would encourage the Dutch parent companies to take a closer look at how to manage their pension costs, both at a global level and a country level, as efficiently as possible and to proactively seek to address any imbalance that has built up.”
Andrew Vaughan
Partner, Corporate Consulting

Dutch companies survey

About the author

  • Andrew Vaughan

    Andrew advises a range of UK and international businesses on DB pension issues including pension scheme funding, risk reduction exercises, pension benefit design, M&A transactions and accounting disclosures.

    View Biography

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