Dutch government overrules DNB’s position on purchasing factors for VPL
In April 2018, DNB published a Q&A about the funding of VPL-conditional pensions. DNB’s intention was to ensure that pension funds fund the VPL-conditional pension in at least a coverage rate-neutral manner. The position of DNB was based on a recent change to regulation. Complying with DNB’s amended position would have substantial financial consequences for social partners and participants, as changes to the funding would need to be arranged within a relatively short timeframe (between 2018 and 2023). The Minister of Social Affairs and Employment deemed this undesirable, and announced that this regulation would be amended. The letter of the Minister contains a number of conditions. The amended regulation is not expected to come into force until the fall of 2018, but pension funds are already allowed to take the Minister’s letter into consideration. The Minister’s position prevents the VPL entitlements of potentially thousands of pension participants from needing to be reduced.
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