Pension system transition – division of responsibilities between social partners and pension funds

“Seven recommendations for resolving issues”

The consultation document on the Dutch Act on Future Pensions sets out a framework for the structure of, and transition to, the new Dutch pension system. It starts from the notion that social partners and pension providers will work together in an iterative process consecutively to change and implement their pension arrangements. The paper demonstrates that this process may give rise to legal issues.

Key Takeaways for the Industry

• Encourage simultaneous decision-making by social partners and fund boards, taking an approach that respects the good governance of pension funds.
• Formalize the essentials of the transition to the new pension contract in an implementation agreement and clarify the regulations governing mandate, implementation and exit.