Dutch pensions industry expected to implement new FTK despite fresh delay

The publication of the new financial assessment framework (FTK) in the Netherlands has been delayed yet again and is now not expected to arrive before Parliament before March.

In a letter to Parliament, Jetta Klijnsma, state secretary at the Ministry for Social Affairs, said her department needed more time “to figure out the details” of the long-awaited legislation.

Klijnsma had previously promised to submit her proposed framework by the end of January at the latest.

For many in the industry, the latest delay comes as little surprise.

As far back as November 2013, Klijnsma warned that the time schedule for the FTK had been “tight”.

Despite the latest delay, the state secretary said she saw no reason to postpone the introduction of the new FTK if Parliament managed to conclude its assessment of the legislation before the summer break began on 4 July.

“In that event, the pensions industry would still have enough time to prepare, so the new legislation could go into effect on the intended date of 1 January 2015,” she wrote.

The pensions industry, however, has taken a dim view of this suggestion. 

A spokesman for the Dutch Pensions Federation said: “From the moment the proposal is introduced to the House of Representatives, the pensions sector will need a year,” he said.

“The state secretary can’t ask us to implement the necessary changes in half a year.”

He said he expected the government to “seriously address” Dutch pension funds’ concerns during upcoming consultations between the Federation and the Ministry of Social Affairs.

Last December, Gerard Riemen, director at the Federation, called for the introduction of the new FTK to be pushed back by half a year.  

Meanwhile, civil service scheme ABP described the notion of implementing the legislation in half a year as “unrealistic”.

A spokesman at the €293bn fund said such a short time frame would put Dutch schemes under too much pressure.

Christian-Democrat MP Pieter Omtzigt said he expected clarification from the state secretary regarding the precise schedule for the legislation.