NETHERLANDS - Pension funds don't have yet to use the exact text of the indexation matrix in the communication to their participants, Social Affairs minister Aart Jan de Geus says.
Instead, the schemes will also be allowed to achieve their consistency requirement by other means during 2007. However, the way they choose to communicate on indexation, the expectations and the uncertainties, will be subject to approval by the regulator De Nederlandsche Bank, de Geus has agreed with the Labour Foundation, Star.
The relevant text in the last column of the matrix will fully take effect as of January 1 2008. From then on, the pension funds have to take the matrix text literally, the minister indicated.
The purpose of the indexation matrix - part of the new Pensions Act - is to achieve consistency between the raised expectations, the financing and the realization of conditional indexation.
As of January 1 2008, pension schemes also need to use an indexation label in their communication.
The label will be developed and tuned with the matrix next year. During the process, the minister and the social partners will check if the terminology of the matrix is also applicable to the insurers, for whom the matrix will be mandatory as of 2008 as well.