December 2022

Conversion from DB to DC: The EU Pension Custodian
20Dec

Conversion from DB to DC: The EU Pension Custodian

By: Hans van Meerten Worldwide we see a move to DC schemes. Most – if not all countries – choose the operate DB next to DC. However, in The Netherlands, the legislator choose for so-called conversion: transforming 'old' DB- to 'new' DC. In 2011, the Dutch legislator introduced the so called 'Pension Custodian'. It could only be used for the Dutch 2nd pillar DC IORP, the PPI. This Pension Custodion should *not* be confused with the IORP II Custodian. However, with the implementation of...

December 20, 2022
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November 2022
03Nov

Netherlands. PFZW divests from 114 fossil fuel companies

Pensioenfonds Zorg en Welzijn, Zeist, Netherlands, sold its holdings in 114 fossil fuel companies at a value of €470 million ($468 million) because they did not yet have plans to reduce their carbon emissions. The pension fund said in a notice on its website that it had also entered into discussions with 13 major fossil fuel companies, such as Shell and BP, about their climate ambitions and how they will be net-zero by 2050. Starting in 2024, PFZW will only invest...

November 3, 2022
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October 2022
19Oct

Dutch central bank urges pension funds to guard against UK-style crisis

The Dutch central bank is calling on the country’s pension funds to consider boosting holdings of cash and other liquid assets to ensure that they can avoid the turmoil that has hit the UK. Officials at the De Nederlandsche Bank have asked local retirement funds to check for signs of stress, recommending that they review liquidity rules and report on any need for fire sales of assets, people briefed on the matter told the Financial Times. The move comes as UK...

October 19, 2022
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September 2022
09Sep

Dutch pension funds sell $92.3 billion in assets, partially related to interest-rate hedges

Dutch pension funds sold €88 billion ($92.3 billion) in assets in the first six months of the year, in part to meet payments required under derivatives contracts, De Nederlandsche Bank said. Pension funds using derivatives contracts to hedge against interest rate rises have faced increased collateral calls due to rising rates, since the price of bonds has fallen in tandem. DNB said in an update Thursday that pension funds contributed €82 billion to margin accounts in the first six months of...

September 9, 2022
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August 2022
09Aug

Dutch pension fund APG completes $600 million MaxCap agreement

Dutch pension fund APG has completed the $600 million mandate with non-bank lender MaxCap Group it agreed to three years ago and given itself the option to double that exposure to $1.2 billion, tapping the growing demand for funding at a time when banks are holding back. The asset manager has exercised the option it took out in 2019 to invest a second tranche of $300 million for first-mortgage loans across all real estate asset classes with MaxCap, which last year sold a...

August 9, 2022
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July 2022
15Jul

The Unbearable Lightness of the Reform of the Pension System

By Hans van Meerten & Sanne Vlastuin In this article, Hans van Meerten (Professor of European Pension Law at Utrecht University) and Sanne Vlastuin (Master's Student in Private Law at Utrecht University) discuss the transition to a new Dutch pension system. In particular, they pay attention to European law aspects that could be problematic in this light, including the pension participant as consumer and the information gap of pension participants. More is needed to make the envisaged pension system EU-proof...

July 15, 2022
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June 2022
30Jun

A Multi-State Model for Sick Leave and Its Impact on Partial Early Retirement Incentives: The Case of the Netherlands

By Sophie de Mol van Otterloo & Jennifer Alonso-García We investigate the effect of part time and full time work on health using a Markov framework and generalized linear models to smooth the resulting crude rates. The Chapman-Kolmogorov equations are used for a general solution. We apply this model to assess a partial early retirement incentive in the Netherlands, known as "the generation pact''. The smoothed rates imply that working part time does not necessarily mean a better health for...

June 30, 2022
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28Jun

Large Dutch funds index pensions again

Several large Dutch pension funds, including civil service scheme ABP an healthcare fund PFZW, have increased pension for the first time since 2008. The pension funds can finally index again thanks to a steep rise in funding ratios this year and a relaxation of solvency rules. ABP will increase pensions by 2.39% as of 1 July, and will pay an additional 1.2% to pensioners to compensate for missed indexation during the first six months of this year. The increase has been...

June 28, 2022
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April 2022
22Apr

Large Dutch pension schemes edge closer to indexation

The funding ratios of the Netherlands’ largest five pension funds have reached their highest levels since 2008. Civil service scheme ABP recorded the largest rise to 117.4% in March as it benefited from its relatively low interest rate hedge, bringing indexation within reach for the fund. ABP’s funding ratio has risen by 6.8 percentage points since the start of the year while the other four large sector schemes also saw their funding ratios rise by 1.5 to 4.1 percentage points....

April 22, 2022
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11Apr

The Danish Pension System: Design, Performance, and Challenges

By Andersen, Hougaard Jensen & Rangvid The need for pension reform is widely discussed against the backdrop of falling fertility rates and rising longevity. These developments challenge pension systems which in many countries already encounter problems with pension adequacy and financial sustainability. In the debate, reference is often made to Denmark as a model for pension system reform. This book offers the first coherent and in-depth description and analysis of the Danish pension system; its structure and performance. As is well-known to...

April 11, 2022
Books, System Characterization, System Sustainability, , , , ,
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