Frontier-free
“United Pensions continues to innovate in key areas such as governance, investment and communications in its capacity as a cross-border pension scheme,” judge’s comment
WINNER
Country |
Belgium |
Founded |
2014 |
Type |
Professional multi-employer pension funds |
Members |
15,765 active |
AUM |
€1,376m |
United Pensions (UP) is a unique and innovative multiple employer European pension fund established under the IORP legislation in Belgium by Aon. This year it celebrates 10 years of operational excellence as a cross-border pension fund delivering local pension schemes of different types in different European countries. As an onshore solution in the EU, UP can provide a very strong level of governance for an international pension plan.
UP provides a complete solution with best practice governance, access to world-class investments and optimal retirement and savings outcomes for members. In 2023, it launched a new solution called International Retirement Savings Plan that enables employers to deliver good quality defined contribution retirement benefits to internationally mobile employees and those in locations with no established or suitable market for supplementary retirement plans.
The investment strategy and solution are regularly reviewed and updated as markets and fund manager ratings change, while the investment platform is integrated with Aon’s investment business to ensure efficient management and internal alignment.
UP’s model is designed to cover all the countries it operates in and as such member communications are consistent across jurisdictions to drive better DC member outcomes, improving corporate governance across different countries. This was further enhanced in 2024 with the rollout of short video graphics about the plans and how they can be tailored, while incorporating AI efficiently translates audio messages into different languages to make communications both accessible and inclusive.
For its defined benefits (DB) schemes, liabilities can be consolidated across Europe in one single vehicle as this ensures more consistency in defining the investment strategy, while facilitating access to higher quality, more diversified investments, leading to potentially better performance. The risk premium can be reduced through benefits pooling across Europe. Moreover, UP has access to the reinsurance market offering competitive premium rates.
STRATEGIC TAKEAWAYS
➤ Cross-border pension fund based in Belgium |
➤ Launch of new DC solution in 2023 and enhanced member communications |
➤ Consolidated DB liabilities in one vehicle and benefits pooling to reduce risk |
HIGHLY COMMENDED
Country |
Belgium |
AUM |
€388m |
Performance |
BE DB section: 12.09% |
Euroclear Pension Fund has recently adopted a more tailor-made approach to managing ESG risk, focusing initially on the global equity portfolio in its Belgian and Dutch DB segments. This is because of the range of philosophies and fund choices and lack of corresponding risk management of its passive ESG managers. This led to a partnership with a leading firm dedicated to ESG for institutional investors to help to set up a new benchmark and global equity mutual fund.
Country |
Belgium |
AUM |
€330m |
Performance |
12.50% (1yr) |
OFP Prolocus now offers a DC framework to the whole Flemish local public sector in addition to its DC pension plan to the province of Antwerp. With over 650 employers now participating, Prolocus has developed a state-of-the-art system for automatic data streaming and automated contributions collection. Elsewhere, the fund has recently made inroads with its sustainability policy and adopted two key drivers between 2022 and 2023: an ambitious sustainability charter and the creation of consolidated ESG reporting.
Judged by
Adrian Cooper
Karel Goossens
Simone Miotto
Philip Neyt
Sponsored by
