Final salary shift
Dutch pension statistics from the pension regulator PVK are now available online – which has revealed the extent of the shift away from final salary arrangements.
The PVK, the Pensioen- & Verzekeringskamer, has put the so-called Pension Monitor online in Excel format. It features all non-financial facts of Dutch pension funds, at current 2004 levels.
According to the monitor, the most important change in 2004 has been the shift from final-salary arrangements to career-average with indexation.
The total amount of active participants retaining a pension based on final-salary has decreased by over 40% (2.3m). Now only 10% of total active participants still have a final-salary plan – down from 50% in 2003.
The overall percentage of average-salary based pension system with indexation has increased from 36.7% to 76.5%. The latter shift has been largely caused by the move of several large corporate pension funds to the new system as of the start of this year.