NETHERLANDS - The e156bn ABP plans to merge its participant's counsel with its employers counsel to boost employee and pensioner participation in the policy-making of the fund.
ABP said that the move was aimed at bridging the widening gap between generations and giving all involved a greater say in actual policy decisions.
A spokesman said: “The move underlines the importance of solidarity between generations. There is a danger that young people will have to pay extra to sustain the older generation.
“This platform for pension fund governance will give both the young and the old an opportunity to be a part of the decision making process.”
He added: “If we lose this solidarity the whole system maybe at risk - it could collapse and we could have much more expensive pensions and the system and we cannot afford that.”
The merged council will provide advice to ABP’s board of governors.
Currently, the fund’s board of governors comprises six representatives from unions, six representatives from employers and one independent chairman. It is responsible for financial policy, portfolio management and pension implementation.
PGGM, the other major Dutch pension fund, has also recently established the PGGM council with pensioner and employees representation.
The council was set up to advise the board of governors on issues such as changes in pension regulations, adoption of the financial statements and increases to existing pensions.
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Professional Pensions is holding its defined contribution (DC) conference on 4 September.