mast image

Special Report

Impact investing


Pension funds must be more transparent on ownership rights – DNB

Related images

  • Bikes on a bridge in Amsterdam

Related Categories

The individual ownership rights of pension fund participants must be more transparent if the Netherlands is to build a truly sustainable system, according to Klaas Knot, president of Dutch regulator De Nederlandsche Bank (DNB).

Speaking at the DNB’s annual pensions congress, Knot cited ownership rights as one of the biggest hurdles to the creation of a “future-proof” pension system.

“People must have realistic expectations about their future pension – not only about its level, but also the risks,” he said.

To do this, he said, pension funds had to be more transparent on ownership rights.


Knot also called for “tailor-made pension arrangements”, such as an age differentiation for allocating risks.

“Older workers need more risk protection, as they have less options for additional measures, while younger workers are in a better position to counter risks,” he said. 

Knot also called for a tailor-made approach to pensions accrual, arguing that the current average had had “significant negative effects” for participants who freelance at some point during their career.

He added that tailor-made solutions also required more freedom of choice for participants, to suit their personal needs.

The DNB president warned, however, that the margin for freedom of choice was slim as long as there were no clear ownership rights, while the average contribution principle had caused a “structural redistribution of pension rights”.

Knot said a balanced risk allocation across all participants was the third condition for a solid pensions system.

“Participants’ trust in the system is eroding when certain generations are systematically disadvantaged,” he said. 

Have your say

You must sign in to make a comment


Your first step in manager selection...

IPE Quest is a manager search facility that connects institutional investors and asset managers.

  • QN-2559

    Asset class: Multi Assets.
    Asset region: -.
    Size: EUR 15m (may be split into two mandates EUR 7.5m).
    Closing date: 2019-09-06.

  • QN-2560

    Asset class: Private Equity.
    Asset region: Global.
    Size: $40m.
    Closing date: 2019-08-30.

  • QN-2561

    Asset class: Infrastructure.
    Asset region: Global.
    Size: $40m.
    Closing date: 2019-08-30.

Begin Your Search Here