Dutch cabinet OK’s EU pension directive bill
NETHERLANDS - The Dutch cabinet has approved a bill to transpose the European Union’s directive on occupational pensions.
The directive, Institutions for Occupational Retirement Provision, is set to become operational on September 23 2005 and countries have been putting it into national legislation.
The move will allow national pension funds to receive contributions from employers and employees in other EU-member states. Dutch companies will be able to place pension promises with funds elsewhere within the EU.
An important requirement is that the national legislation on labour and social affairs applies, such as compulsory participation in a scheme and the arrangements of collective agreements.
Investments of pension assets must match requirements of safety, quality and spread of risks.
In the case of Dutch funds receiving contributions, the Dutch central bank DNB will have the supervision. If Dutch employers are putting out to contract their obligations abroad the supervision is being done by the national watchdog.