Doing Business in the Netherlands 2012 - American Chamber of ...

Doing Business in the Netherlands 2012
� Extra risk insurance is already included in the pension
premium.
� The pension fund will use the DB system to divide the
pension accrual, making the yearly pension accrual flexible.
� The basic assumption will be that the premium should provide
for the expected pension. However, if there is a mismatch in
expectations and in the final result, the employees will
collectively carry the actuarial/investment risks and benefits.
� Indexation might be paid by extra interest profits.
The Dutch National Bank (DNB), however, is very critical on the
so-called CDC pension plans and interprets some of these plans as a
DB plan. The interpretation of the DNB has a direct effect on the way
the pension plan has to comply with specific pension provisions. For
IFRS purposes, the pension plan system will be interpreted by the
specific accountant. If the CDC pension plan will not be interpreted
as a DC plan, this may imply a considerable risk for the employer.
15.7 Pension Developments in the Netherlands
15.7.1 Dutch Pension System
In early 2010, several commissions (established by the Dutch Cabinet)
published their view on the question whether the Dutch pension
system is sustainable enough to take into account future
developments. The commissions made several recommendations in
order to make the Dutch pension system more sustainable for the
future while trying to maintain the fundamental principles of the
current Dutch pension system as much as possible (collectively,
solidarity and compulsory membership). The Dutch Cabinet has
indicated that it follows most of the conclusions and recommendations
of the commissions.
On June 2010, the social partners (trade union federations and
employers’ federations) have concluded a “pension agreement.” In
Baker & McKenzie 143