Bill on mergers between industry-wide pension funds not fit for purpose
Various industry parties in the Netherlands have expressed reservations about a recently-published bill aimed at facilitating mergers between industry-wide pension funds. Due to the range of legal hurdles, it is questionable whether industry-wide pension funds will be able to benefit from economies of scale. The Council of State has questioned the bill’s practical relevance, the Federation of Dutch Pension Funds has called for the bill’s withdrawal, and, according to the press, pension funds are being “fobbed off”. De Brauw has previously questioned the government’s plans for the bill. Compared to these plans, no improvements have been made to the bill. Moreover, additional requirements for mergers have now been added, adversely affecting the effectiveness of the proposed arrangements.
This article is only available in Dutch, click here to read it.