NETHERLANDS - The Dutch Central Bank, DNB, today said it has received a notice from several Dutch pension funds reporting shortages in their reserves.

The DNB has asked the - as yet undisclosed - funds to write a long-term recovery plan in which they will need to outline how control measures will be applied to recover the financial position and resolve the reserve shortage.

The regulator today wrote in a letter to pension funds it had received news on shortages from several funds in the aftermath of the credit crunch.

In the letter, DNB blames the credit crunch, the subsequent drop in interest rates and negative developments on the equity markets for the drop in the cover ratio of several pension funds.

Next to the assets set aside for the pension liabilities, the new pension law requires funds to have a certain financial reserve or buffer in case of a drop in the cover ratio. The size of this buffer depends on the risk profile of the fund.

DNB said in its letter today if a pension fund foresees or can foresee a shortage in this reserve, officials have to report this immediately to the regulator.

"DNB has asked a number of pension funds for a more precise insight into the drop in their cover ratio," the letter read.

The regulator added: "When a pension fund moves closer to the danger zone, a more active position of the management of the pension fund is necessary."

If you have any comments you would like to add to this or any other story, contact Carolyn Bandel on +44 (0)20 7261 4622 or email