NETHERLANDS – Holland’s first parliamentary chamber will rule next week (December 19) whether Dutch industry-wide pension schemes can sell additional individual social benefits to scheme members – in a case being fiercely challenged by the country’s insurance lobby in the national courts.

Dutch social partners are seeking to oblige industry-wide funds to offer products such as health insurance to employees already under obligation to join the fund itself.
While members will be able to choose whether they partake, Holland’s insurance companies are crying foul, claiming that the legislation could flout European competition law.

Tom Ottervanger, a partner at law firm Allen & Overy in Brussels and Amsterdam, representing the insurers, comments: “ Although funds have to this through separate insurance companies, they can use the data for all their scheme members to make special offers, for example.”

Ottervanger says the proposed law, set to enter into force on January 1, tries to prevent such unfair competition, disbarring the pension funds from using this data, although he doubts its efficacity.
“ Whether this will work in practice remains to be seen.
“ Individuals have to give permission for the pension fund to offer them other products, but this could take the form of a question on whether they mind being told about other products. It is more difficult for private insurers to do this.”

The case is currently being heard by the Dutch courts but may be referred to the European Court of Justice, says Ottervanger.

Martin van t Zet, public affairs spokesperson for the VB body for industry-wide pension schemes in the Netherlands, comments:
“ We believe these products have an essential social function – the employee is not obliged to take this and could go to a private provider.
“ This proposal also says that pensions funds are not allowed to give free advice to the members for individual products.”
The law was ratified by Holland’s second governmental chamber in November.
A judgement on the pending court cases is expected by summer 2001.

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