The implementation of the principles for pension fund governance by scheme boards must be made mandatory, the Dutch Labour Foundation has said.
The body - also known as Star - has presented its definite version of the governance rules to social affairs minister Aart Jan de Geus. The minister had asked for principles, to be developed in co-operation with the pension funds, insurers and organisations for the elderly.
According to Star, scheme boards should be allowed to apply the rules in a way that fits their specific situation. The supervision should be with pensions regulator De Nederlandsche Bank.
In the Star’s opinion, the accountability body - to be created by each pension fund - must have a legal right to appeal at the court of justice in Amsterdam. It has asked the minister to make the parliamentary right to investigate also applicable to pension funds.
The governance principles themselves haven’t been changed since the presentation of the concept rules.
The observance of the rules will be evaluated in 2008. The same goes for the final evaluation of the covenant between the Star and the organisation for the elderly CSO on co-partnership at policy of pension funds.