Kingdom of the Netherlands-Netherlands: Publication of Financial Sector Assessment Program Documentation: Technical Note on Pensions Sector Issues

IMF Staff Country Reports, July 25, 2011

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Canonical URL: Kingdom of the Netherlands-Netherlands: Publication of Financial Sector Assessment Program Documentation: Technical Note on Pensions Sector Issues

The recent crisis and interest rate declines have put the financial sustainability of the Dutch occupational pension system under severe strain.
Benefit-cutting measures have been received by the public as an unexpected and almost unknown option inherent in the pension contracts.
An unexpected increment in the longevity of the Dutch population has added to the strain on pension funds.
The transparency and risk-sensitive framework of pension funds regulation has raised questions about the sustainability of the Dutch pension system.

Managing solvency pressure resulting from prolonged low interest rates.
Communicating contractual features (including potential benefit cuts) to restore public understanding and trust.
Addressing longevity risk and its implications for funding and benefit design.
Assessing the implications of greater transparency and risk sensitivity in regulation for pension fund behavior and member expectations.

Subjects: Aging, Expenditure, Financial sector policy and analysis, Income, Labor, National accounts, Pension spending, Pensions, Population and demographics, Stress testing
Keywords: accrual benefit, Aging, benefit expectation, company pension fund, CR, financial structure, fixed income, fund balance, Global, Income, ISCR, market value, minimum wage, occupational pension scheme, pension administration company, Pension administrator, Pension spending, Pensions, retirement age, Stress testing