Source: WikipediaThe former offices of Delta Lloyd in AmsterdamFollowing the transfer, Delta Lloyd’s 2,766 active participants will accrue pension rights in a less mature pension fund, as the NN CDC scheme has 5,300 workers and just 200 pensioners.This demographic has allowed NN CDC to implement a much more aggressive investment policy, with a return-seeking portfolio worth 40% of its assets. The Delta Lloyd scheme has 24% invested in return-seeking assets.In addition, the Delta Lloyd fund is in a relatively strong position to pay inflation-linked bonuses, whereas NN CDC has limited options for indexation given its lower funding level.Inge de Vries of trade union De Unie acknowledged that the unions had made a concession on pensions during the transition negotiations, but highlighted improvements on pay and labour conditions for former Delta Lloyd staff.The annual report of NN CDC stated that its internal supervisors had urged closer co-operation between NN’s three pension funds, which included the €28bn closed ING Pensioenfonds.NN’s CDC scheme shares services with ING’s CDC scheme. Both schemes were established following the split of original parent company ING into the separate companies ING and NN Group, in 2011.The board of NN CDC said it wanted to continue the co-operation with ING CDC for now as both schemes had significant similarities and were facing the same issues. Theo Krekel, the scheme’s manager, said the pension fund was assessing several options, including joining a general pension fund (APF) or remaining independent with some increased co-operation with NN’s €522m CDC scheme.A third option would be a buyout with an insurer, he said.The board decided against transferring the legacy scheme to the CDC fund as the different funding levels – 126% at Delta Lloyd and 109% at NN CDC – would be an obstacle. The €3.2bn Dutch Pensioenfonds Delta Lloyd is to close following the takeover of its insurance company sponsor by NN Group two years ago.Pensions accrual will continue in NN’s collective defined contribution (CDC) scheme, according to the annual reports of both pension funds.The decision followed the introduction of a new collective labour agreement (CAO), amending labour conditions for staff of NN and former insurer Delta Lloyd.Pensioenfonds Delta Lloyd will close to new entrants from next year. It currently has 13,000 members.