NETHERLANDS - Dutch social affairs minister Piet Hein Donner says he will examine the implications of Dutch pensions funds moving to Belgium.

Belgian pensions supervisor CBFA is still refining the assessment procedure for the chosen accounting rate, and how pension funds must deal with financial problems, he stressed during a debate.

The effect on indexation of a Dutch scheme being carried out in Belgium is not clear-cut. However, the odds of less certainty for Dutch participants seem to be greater so far, he said.

Donner's response, including his earlier answers to questions of three MPs, did assuage some politicians' worries.

The minister had explained that a pension fund that wants to move abroad needs to dissolve itself. This way, the mandatory industry-wide pension funds will cease to exist, which is a high price to pay for the social partners, he said.

According to Donner, the Dutch indexation matrix and requirements for value transfer, exchange with surviving relatives pension and information, will still apply for Dutch schemes abroad.

The Dutch Association of Industry-wide Pension Funds, VB, is not alarmed yet, its director Peter Borgdorff indicated.

"No industry-wide scheme is considering a move to Belgium. The financial security, offered by the financial assessment framework FTK is too important to them."

"The Belgian requirement that companies need to supplement in case of a financial shortfall, doesn't appeal to us. And a guarantee fund isn't beneficial either. We want to stick to our own financial buffers."

At the Foundation for Company Pension Funds, or OPF, nobody was available for a comment.

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