A bill amending the financial assessment framework for pension funds has been submitted to the Dutch parliament. The bill introduces a new type of pension contract characterised by a method for smoothing out financial shocks, clear regulation on indexation, and a stable premium.
The bill also sets out the new solvency requirements that pension funds must fulfil. An additional aim is to clarify the application of the prudent person rule. The government has based the bill on five “policy conclusions”. In our Legal alert we discuss the issues highlighted in the policy conclusions and summarise how the government intends to resolve them. We also mention a few other notable changes of law proposed in the bill.