NETHERLANDS - Piet Hein Donner, the Dutch minister of social affairs, has today reminded pension funds of their legal obligation to communicate to the Dutch pension regulator and central bank DNB when they hit a reserve shortage.
Speaking at the member conference of VB, the Dutch association of industry-wide pension funds, Donner said he was "saddened" by news from the DNB suggesting it had only received word from 40% of the funds who have a reserve shortage.
Willem Noordman, an employers' representative at the VB, made similar calls to pension funds, adding DNB's criticism is fair as there are still not enough funds openly communicating about their shortages to funding levels.
"According to the DNB, only 40% of funds communicate such a shortage," said Noordman, adding, "We think that it is very important that pension funds communicate in time to the DNB - there are too many pension funds who do currently not do this."
Noordman said communication was also important when funds are already in financial trouble and have to deliver monthly figures to the DNB.
Pension funds at the conference told IPE they are relieved by the DNB's decision to give pension funds more time to recover, by postponing the date for any recover plan until April next year, though many added they do not think the funds' situation will have improved by then.
Noordman stressed he was content with the current discourse between the pension sector and the DNB, though adding the mutual trust requires pension funds do not "play hide and seek" over their funding status.
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