IBI Benchmarking is the new independent standard for pension funds. IBI Benchmarking allows pension funds to report transparently and uniformly on their administrative costs. Increased cost transparency leads to better insights for pension fund boards and ultimately lower costs for scheme members.
The new IBI Benchmarking is innovative, distinctive and accessible. Characteristic of the IBI Benchmarking is that it is based on local legislation and uses easy to get to, uniform and audited figures. This keeps the cost down and keeps participants’ time commitment to a minimum. It makes participation manageable and affordable.
IBI Benchmarking pays particular attention to cost versus risk and return relative to the entire sector and the direct peer group. Thus IBI Benchmarking for pension fund management generates a balanced picture of costs. In addition, IBI Benchmarking has developed a number of important indices and indicators that provide further insight into reported costs. In this way we ensure that the cost of the fund can be interpreted properly.
Eric Veldpaus developed the independent IBI Benchmarking through collaboration between the Institutional Benchmarking Institute and Nyenrode Business University, in consultation with a Sounding Board consisting of: PFZW Pension Fund, TNO Pension Fund, PNO Media Pension Fund, PME Pension Fund, Randstad Pension Fund and the Transportation sector Pension Fund. This unique partnership links IBI Benchmarking with a multidisciplinary range of independent experts from academia and practice. It ensures product quality and support from the pensions industry.
IBI Benchmarking brings a substantial and relevant contribution to the transparency and communication of the administrative costs of pension funds in relation to their chosen strategy.
IBI Benchmarking consists of a Essential report, Basic report and the Basic Plus report The basic report includes a benchmarking returns, investment costs and pension management costs of pension funds over the previous (closed) calendar year. All the developed reports comply with the Recommendations on administrative costs of the Federation of Dutch Pension Funds.