NETHERLANDS - An FTK financial assessment framework modelled on a real cover ratio, rather than the existing nominal one, is among Cabinet proposals being prepared by the Dutch department of social affairs.

Maarten Camps, the department's director-general for labour, told delegates at a Netspar meeting in the Netherlands yesterday that new rules must also ensure there is also adequate expertise within pension funds' boards, as they remain ultimately responsible for pension funds' results.

His comments came during a discussion about the pension reform reports recently presented by the Frijns and Goudswaard Committees.

In order to improve the risk perceptions of pension funds' participants, the social affairs department intends to draw up rules for communicating the risks and opportunities of pension arrangements, according to Camps.

The social affairs minister Piet Hein Donner is also set to lay out proposals as to how social partners provide members with more clarity on pension risks, perhaps through agreements on ‘soft pension rights' such as conditional indexation, Camps added.

He said the announced measures are set to become the guiding principles of Donner's integral response to both reports, and will also include an evaluation of the FTK.

The director-general also said the Cabinet's response is expected by the end of March, and is then likely to be presented for all-party discussions by the end of July.

An evaluation of the arrangements for recovery plans will also take place too, he added.

During the Netspar meeting, Jean Frijns - the former CIO of civil service scheme ABP and head of one of the Committees - stressed the required increase in pension board expertise on investment and risks must be underpinned through sound legislation.

Gerard Riemen, director of the Association of Industry-wide Pension Funds (VB), said he wondered whether pension fund participants will sufficiently understand issues such as soft pension rights and real cover ratios.

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