Project Groups
In project groups, Netspar brings together pension and retirement experts from the industry and academia. They examine current issues from diverse backgrounds. An overview of existing and completed project groups.
Project groups outline various considerations, search for common objectives, explore new fields of research, and sketch out future scenarios. Thanks to this broad scope, the project groups produce valuable insights, and often recommendations, as well, for policymakers.
The Foundation Board provides recommendations every year on what project groups should be formed. The Partner Research Council formulates potential topics using the Netspar Action Plan as a starting point.
Draghi report and supplementary pensions
Analyzing auto‑enrolment in European proposals
The European Union has in recent years increasingly steered towards automatic participation in pension schemes (auto‑enrolment). This is reflected in various policy documents and proposals, each with its own legal status and degree of binding force. The project group can explore the underlying motives. Also relevant is the impact of potential binding EU provisions on the Dutch second and third pillars, and the extent to which the European Commission can encourage or enforce this. Furthermore: which forms/definitions of auto‑enrolment exist (in theory and in international practice), and which definition underpins EU recommendations? Finally: is an opt‑out envisaged and for whom; is the obligation placed on the individual employee or on the employer; and does the Dutch mandatory participation meet these expectations, or is the EU aiming for more individual variants (such as in the UK or via a personal PEPP account)?
Investment and administration costs of pension providers
Pension providers’ costs impact pension outcomes. More transparency about costs is a key goal of the 2019 pension agreement. The new UPO will therefore include more information on costs. Costs are multifaceted: investment costs revolve around the balance between cost, return, risk and sustainability. With administration costs, too, the question is what participants get in return for their money: what is the “value for money”. A broadly composed project group wants to contribute to a better discussion about costs and performance of pension providers.
Pension obligation for all workers
In the project group Implementation Aspects of a Mandatory Pension System in the Netherlands, Netspar examined how a mandatory pension system for all workers could be implemented in practice. The study finds that such a system could help reduce pension gaps among both employees and the self-employed and is feasible in principle, but requires careful design choices regarding simplicity, freedom of choice, implementation, and public support. Particular attention is given to the position of self-employed workers, as well as the role of supervision, enforcement, and market organization.
Role of pension sector in energy transition
Integration of Sustainability – and Risk Preferences
This project group examined whether sustainability and risk preferences of pension participants can be measured in an integrated way. The study explored scientific insights, regulatory considerations, and practical applications related to the joint measurement of these preferences. [netspar.nl], [netspar.nl]
The research shows that sustainability and risk preferences are closely related, but that integrated measurement still faces several methodological and practical challenges. The project group concluded that further development and practical experience are needed to establish a reliable integrated approach
Best Governance Model after the Transition
Current legislation allows companies to choose from a variety of governance models, giving them the required level of flexibility in this regard. Meanwhile, a new pension contract is being introduced with the Future of Pensions Act (Wet toekomst pensioenen, or Wtp). One question this raises is whether the changes in terms of responsibilities have implications for pension fund governance. Do the current governance models provide enough options for incorporating the developments of the new contract?
While the changes in terms of responsibilities are related to the pension contract, the new contract also has implications for the material nature of pension funds. Under the new system, they will become more like investment funds (assets only) than is now the case. Reason enough to start including the legally prescribed governance standards for investment funds (e.g., the AIFMD, but also the duties and responsibilities of internal oversight) in our research efforts. Will those statutory governance standards automatically apply for pension funds? Equally important is the question of how to best incorporate input from pension participants, who must increasingly bear the risk in the end.
Guidance and Advice in Pension Options: What Role Can Pension Funds and Insurers Play?
During and after the transition, there will be a greater need for advice and guidance for participants choosing between pension options. On the one hand, the financial position of households is changing, with a greater degree of heterogeneity in terms of such things as employment status, income growth, family composition, preferences, and goals. On the other hand, the context in which participants build their pension will change. Risks will be more directly borne by the individual participant and there will be more room for individual choice. In the short term, for instance, there will now be a new option upon retirement in terms of the “lump sum payout.” In addition, the “guided selection” standard is being introduced. In light of all these changes, it is worth delineating the metrics any good advice should meet and how pension funds and insurers can advise and guide participants after the transition. The project group will approach the issue from two sides, starting with ascertaining the kinds of guidance and consultation that are possible and needed when making pension decisions.
Explainability: Understanding, Acceptance and Satisfaction
In this project group, we focused on the following questions: what opportunities and risks are there in striving towards understanding of the new pension scheme? What opportunities and risks are there in striving towards acceptance of the new pension scheme? To what extent does the communication on the introduction of the scheme have consequences for satisfaction in the longer term?
Read the report (in Dutch, abstract in English)
Socially Responsible Pension Investment
In a broad context, this project group can develop a conceptual framework highlighting the role and responsibility of institutional pension investors in the Netherlands in both economic and legal terms. Within this conceptual framework it would also be possible to consider the ethical aspect of these long-term decisions, as well as the governance side, particularly in light of the prudent person principle whereby the institutional investor invests in the interests of the pension participant.
That raises a number of questions that recur regularly in different forms. This project is an exploration of the horizon, albeit that steps already taken in society mean that in some areas it is actually possible to think further and go beyond a ‘mere’ exploration. When implementing the investment policy, is the institutional pension investor permitted to take other factors into account besides risk-return considerations? If so, what factors are these and under what conditions is this allowed?
Read the report (in Dutch, abstract in English)
Responsibility Allocation for Planning Pension Provision
The new pension system is expected to take effect around 2026. What are the consequences of the system changes in the longer term by way of scenarios for 2036 and beyond? The scenarios focus on people who build up their pensions.
In most scenarios, tech companies are important, but the government, pension providers and other parties also see their roles change. The parties involved must ensure that they act ethically, even or especially if they make use of the tech companies’ technology. Therefore, it can be beneficial to embed ethics in legislation and regulations at an early stage.
Read the report (in Dutch, abstract in English)
The Labor Market and Retirement
The central question of this project is if and how existing and potential long-term developments in the labor market affect pensions and retirement. Developments such as technological advancements, globalization, and greater flexibility have consequences for the way in which labor relations are structured. Moreover, changes in labor relations have implications for the current pension system and the options and desires workers have with regard to their pensions and retirement.
The project group outlines a number of scenarios for the pension system of the future based on analysis of the developments to date, insights from the literature, and innovative data analyses.
Read the report (in Dutch, abstract in English)
Flexible Retirement
Greater flexibility in terms of transitioning from work to retirement can have positive effects on health, job and general satisfaction, and long-term job proficiency. The Netspar Flexible Retirement project group analyzed the potential for, and bottlenecks of, flexible retirement and presented some policy considerations.
Changing Role of Pension Providers in the Era of Big Data
The lightning speed of developments in the field of big data and data science has a growing influence on our daily lives. This has serious implications for the pension industry. This project group analyzed what kinds of considerations pension providers might use in their strategic planning. Read the review of the Thematic Conference on this topic.
Survivors Pension: Fragmented Design Complicates Risks
Besides its obvious emotional impact, death also has financial consequences. Some of the major associated risks are little known or discussed, and there has been almost no attention paid to survivors pensions in the discussions surrounding the new pension contract. Reason enough to shine a light on the provisions for surviving dependents in the Netherlands.
Read the report and the Netspar Brief ‘Survivors pension no longer assured’.
Housing, Healthcare, Retirement Require a Comprehensive Approach
Pensions and retirement savings are increasingly viewed as the central component of financial planning for old age. Yet, housing and healthcare also play an important role, each in their own way. A comprehensive approach can offer benefits for households in terms of their financial planning for retirement by including housing, healthcare, and pensions in the overall picture.