The Dutch pension sector is experiencing turbulent times, particularly because of uncertainties involving the new pension agreement. Dutch society can no longer sustain the current pension system. Whatever form the new pension system will take, it will be up to the government, trade unions and employers to overcome the major challenge to make it future-proof.

From group schemes to individual arrangements

Traditionally, the Dutch pension system has been characterised by group schemes. But the need in the market is shifting: working people want to know how they can individualise their pension, when they can retire and how high their pension benefits will be. In other words, the dynamic is moving from group schemes to customised arrangements tailored to individual needs. This trend is a key concern in light of the new pension agreement.  

Other important factors with a view to future-proofing your pension products are the increasing cost of compliance and persistent regulatory requirements. BDO knows the ins and outs of the pension market and understands where you may be faced with challenges, such as the required introduction of key functions. We know that aspects such as cost control, data quality, cybersecurity, internal control, outsourcing and sustainability are strategic priorities on your executive agenda.

IORP II: key functions

What’s new is that pension funds are expected to meet the requirements of IORP II, which has been transposed into Dutch pension law since 13 January 2019. The main aspects of this EU Directive are the introduction of key functions, ability to execute countervailing power in the governance system and risk quantification. Effective governance is a priority in the light of IORP II as well, particularly when it comes to the positioning of IORP II-based key functions within the current governance structure. Read more about this here.

What BDO can do for you

Our personalised and pragmatic approach can help you design and staff your key functions in accordance with IORP II. We always look to strike the right balance between efficiency and effectiveness; we don’t do more than is necessary and we seek to generate true added value, to make you see your improvement potential and to help you identify blind spots. We would also be happy to assist you in setting up a cost-efficient internal audit function. At BDO, we listen to what you have to say and we incorporate your specific requirements in our solutions, so that we can achieve added value together.

Want to find out more about BDO’s personalised and pragmatic approach for your pension fund or institution? Our specialists would be happy to talk to you about your options.