In the summer of 2009, the Hero pension fund decided to look for a way to remove the risk of the Hero DB plan while protecting the interests of its pensioners.
Hero BV is a specialist producer of high quality consumer foods, focused on fruit products and infant nutrition. Founded in 1914, Hero BV is the Dutch subsidiary of the Swiss-based Hero Group. In 2007, Hero acquired Friso baby Foods, an infant milk business, to complement its portfolio of baby foods in several countries, including Spain, Turkey and Sweden.
Hero BV operated two Defined Benefit (DB) pension plans, a guaranteed reinsured plan for Friso employees and a company pension fund for Hero employees. In the summer of 2009, the Hero pension fund decided to look for a way to remove the risk of the Hero DB plan while protecting the interests of its pensioners. Hero approached several pension providers, including AEGON, to identify an appropriate solution.
‘Over the years, it had become increasingly difficult, costly and time-consuming to manage our pension plans’, says Jop Peek, Chief Financial Officer at Hero BV. ‘Our pension plan represented a considerable financial risk on our balance sheet, and we strongly believed that the pension fund required full-time professional management – something we could not provide. We were looking for a solution that would remove the pension risk to the company while providing our employees with a good, guaranteed pension.’
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