The Dutch central bank has confirmed
that the new Financial
Assessment Framework (nFTK), will now
be delayed by a year to 1 January 2007.
“After discussion with the Ministry of
Social Affairs, the Dutch Central Bank
has decided that the nFTK will
become compulsory for pension funds
as of January 1 2007,” De Nederlandsche
Bank said.
The DNB said the current situation in
parliament and the pension sector give
“ample reason” to expect that the
planned implementation in 1 January
next year would “not be feasible”.
The announcement ends a period of
uncertainty over the new framework,
the Financieel Toetsingskader.
The implementation of the nFTK for
insurers was delayed in March this
year, although the DNB had consistently
said the framework would not
be delayed for pension funds. Last
month the main Dutch opposition
party the PvdA called for the nFTK to
be delayed for a year.
“We shouldn’t undermine in the short
term what we want in the long-term,”
Jos Heuvelman, the DNB’s director of
supervision said. “From now on the regulator
will look through FTK glasses.”
He added that oension contributions
would have to be FTK-proof by the end
of next year.
He added that there would be no
change in the one-year recovery period
for funds that were less than 105%
funded. And deliberate underfunding
was not an option.
“I want to impress that FTK is going to
make one of the most important contributions
to the good risk management
of your funds,” said DNB director Dirk
Witteveen in a speech recently.
“We have over the past few months
spoken to all parties concerned over a
range of diverse options.”
He said the DNB and the social affairs
ministry are proponents of proper
implementation. “It is therefore a good
thing that something as fundamental
as the FTK is a subject of parliamentary
discussion.” He acknowledged that the
parliamentary debate has not yet been