mast image

Special Report

Impact investing

Sections

Solvency II rules could increase pension contributions by 30%, says Dutch minister

Related images

  • Solvency II rules could increase pension contributions by 30%, says Dutch minister

Related Categories

EUROPE - Contributions could soar by as much as 30% if Solvency II rules are applied to pension schemes, according to Paul de Krom, the new Dutch minister of social affairs and labour.

Speaking at the Conference on the Green Paper on Pensions in Brussels today, de Krom warned against the idea that investment rules established in Solvency II should also apply to pension funds.

"A private insurer cannot be compared to a pension fund," he said.

"Once a pension fund is established, participation is mandatory, and this makes its prospects fundamentally different from private insurers.

"If market rules were fully applied to pension funds, this could easily lead to a 20-30% rise in pension contributions.

As far as the Netherlands was concerned, he said, this would be "unacceptable".

"The readiness of employers and employees to take part in pension schemes would be undermined, and this would lead to reduction of pension scheme participation and, subsequently, lower income for pensions," he said.

De Krom also took pains to highlight the importance of pension system diversity in the EU.

"I share the view in the Green Paper that member states are themselves responsible for the organisation of their pension systems and that there is no one-size-fits-all system design," he said.

"Every member state must establish for itself what it considers adequate and decent according to its social, economic and cultural circumstances. Adequate in this sense is a relative concept.

"This relativity, however, does not apply to the concept of sustainability because every pension must ultimately be paid for, irrespective of the national circumstances."

Have your say

You must sign in to make a comment

IPE QUEST

Your first step in manager selection...

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

  • QN-2548

    Asset class: Fixed Income, Emerging Market Debt Hard Currency (Active).
    Asset region: Emerging Markets.
    Size: CHF 300-400m.
    Closing date: 2019-07-30.

  • QN-2549

    Asset class: Fixed Income, Emerging Market Debt Hard Currency (Passive or Passive Enhanced).
    Asset region: Emerging Markets.
    Size: CHF 300-700m.
    Closing date: 2019-07-30.

  • QN-2550

    Asset class: Fixed Income, Emerging Market Debt Local Currency (Active).
    Asset region: Emerging Markets.
    Size: CHF 250-350m.
    Closing date: 2019-07-31.

  • QN-2551

    Asset class: Fixed Income, Emerging Market Debt Local Currency (Passive or Passive Enhanced).
    Asset region: Emerging Markets.
    Size: CHF 250-350m.
    Closing date: 2019-07-31.

  • QN-2552

    Asset class: Fixed Income, High Yield (Active).
    Asset region: High Yield (US).
    Size: CHF 500-600m.
    Closing date: 2019-07-29.

  • QN-2553

    Asset class: Fixed Income, High Yield (Passive or Passive Enhanced).
    Asset region: High Yield (US).
    Size: CHF 500-1'100m.
    Closing date: 2019-07-29.

  • QN-2554

    Asset class: Global Real Estate (Equity, unlisted Funds).
    Asset region: World (ex-Switzerland).
    Size: CHF 200 mn (potential for further growth).
    Closing date: 2019-08-07.

  • QN-2555

    Asset class: Real Estate.
    Asset region: European.
    Size: EUR 50 - 100 million.
    Closing date: 2019-07-22.

  • QN-2556

    Asset class: FX Hedging.
    Asset region: Global.
    Size: Mandate size of CHF 1.5 bn.
    Closing date: 2019-08-09.

  • QN-2557

    Asset class: All/large Cap Equities.
    Asset region: China A-shares.
    Size: Unit linked platform (0m USD in initial investment).
    Closing date: 2019-08-01.

Begin Your Search Here
<