NETHERLANDS – The Dutch Association of Industry–wide Pension Funds, the VB, has presented its draft code for pension fund governance.
The move follows a workshop held on June 30, which found that a code for pension fund governance must quickly be introduced, formulated along the same mould as the Tabaksblat Code for corporate governance code.
The draft code is subtitled ‘Rules for the management, control, accountability and supervision of pension funds'.
Its key points:
- All pension funds in the Netherlands are able to comply with the code
- the board of management consists of representatives of employee and employer organizations
- the board of management is accountable to the supervisory board
- the economic stakeholders - employers, employees, pensioners and former participants - have seats on the supervisory board
- the supervisory board is also charged with the supervision of the board of management of the pension fund
- the supervisory board has the power to force the resignation of the board of management in matters of grave importance
- members of the board of management and members of the supervisory board must meet concrete and verifiable requirements with regard to expertise and education
- the external auditor must not be associated with the firm of the external actuary.
The draft code has been sent to VB members for consultation, with October the deadline for comments.