NETHERLANDS - Dutch companies will have the ability to outsource their pensions to a non-Dutch organisation or fund within the EU when the country implements the new EU pensions directive.
The supervision of the pension arrangements will be according to the rules implemented in the European country where the fund is based.
Investment of the pensions will have to comply to the security, quality and risk spread of the respective country’s supervisor.
This is part of a new law proposed on Implementation of the Pension funds Directive, which has been sent to the Dutch parliament by minister of Social Affairs and Employment, Art Jan de Geus.
At the same time, it will be possible under the new law for corporate and industry-wide pension funds to invest and administer pension contributions of employers and the self-employed originating in other EU countries. Here, the supervisor will be the Dutch Central Bank (DNB).
The Dutch cabinet has proposed the new changes to comply with the new EU directive, which has to be implemented in the different EU countries by September this year, is a first step towards an European market for occupational pension arrangements.
An important part of the directive is the requirement the Institution for Retirement Provision (IORP) will keep to the social and labour laws of the EU member country involved.
It will be a necessity that the IORPs comply to the compulsory participation pension arrangement and with the overall form of the pension arrangements as have been agreed upon in the respective collective labour arrangements (CAO).
Minister De Geus seeks to implement the new IORP Directive in Dutch by September 23 this year.