Security at stake; analysis of the financial assessment framework for pension funds

The assessment framework stipulates the conditions for social partners within which to design pension schemes. With these conditions, supervision on pension funds can attribute to the robustness of the pension system in the Netherlands. When filling in the assessment framework, it is important to take the shrinking basis for risk sharing into account. The maturation of pension funds, the ageing of the population and the increasing mobility on the labour market reduces the possibilities to absorb shocks through adjustment of contribution rates. The pension system can be made more robust by revising the (implicit) risk sharing contract and/or a more prudent policy in taking risks. By putting down more risks with current participants (through more flexible pension claims), volatility of contribution rates can be reduced. This also reduces the risks for continuity of the pension funds.

This publication is in Dutch.