Former ING Directors Take Pensions Dispute to Court
15 May 2012 (PLANSPONSOREurope.com) – A group of 10 former senior executives at ING have gone to court demanding their pensions be topped up, according to the Telegraaf.
If the court rules in their favour, it could cost ING up to €200m or between €500,000 and €1m per banker, and other claims are likely to follow, according to the newspapers.
According to the Telegraaf, the former directors say their pension has not gone up in line with inflation since 2010 but according to their employment contracts, pensions should be fully index-linked. Their employment contracts stated pensions will go up in line with inflation as long as the bank is solvent.
ING told the paper that the solvency clause means the bank can deviate from the agreement if there are serious reasons to do so. They said that the bank rather than the pension fund determines if this is the case.
ING Pensions have not gone up in line with inflation for the past three years because of the difficult situation facing the bank, the paper says. The effects of the financial crisis have been compounded by increased capital requirements and the forced sell-off of their insurance business.