Former ING directors go to court for higher pensions

A group of 10 former senior executives at financial services group ING have gone to court demanding their pensions be topped up, the Telegraaf reports on Tuesday.

If the court rules in their favour, it will cost ING some €200m or between €500,000 and €1m per banker, and other claims are likely to follow, the financial services group says.
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. The contracts state pensions will go up in line with inflation as long as the bank is solvent.
ING says this means the bank can deviate from the agreement if there are serious reasons to do so. 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 the insurance activities.

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