NETHERLANDS - The government should not fine companies who miss the implementation deadline for new early retirement regulations, Aon Consulting has argued.
Aon called on Dutch social affairs minister Aart Jan de Geus to give companies more time to meet the implementation deadline of 1 January 2006, which it says many companies will not meet.
Rajish Sagoenie, managing consultant of the actuarial advisory group at Aon Consulting, said: “The majority of the pension schemes in the country must still be adapted.”
The ‘levensloop’ reforms usher in a new early retirement scheme to replace VUT amid a framework of revisions that have come to be known as VPL.
The reform aims to remove the fiscal incentives of early retirement (before 65) and in so doing it has changed the extent to which early retirement can be financed and structured by existing employer sponsored plans.
Pension funds have been arguing for a longer transition period for some time, claiming that the one year transition period they were given was too short.
Sagoenie continued that it it would be impossible to effectively implement the regulations in time for the deadline, even if, “all the decision makers, consultants and other people concerned worked day and night.” The consultant also expressed concern that hasty decisions would affect the quality of the pension system.
There must be ample time for reflection, he argued, because further consideration could better serve the government’s aim of raising labour force participation among the the elderly.
This week's edition of Professional Pensions is out now.
Nearly 60% of UK employers consider defined contribution (DC) master trusts to be the "most suitable" pension fund for their employees, according to research by Buck.
Companies which have tried to dodge their pension duties by changing their identities are being "hunted" by The Pensions Regulator (TPR) in a crackdown on non-compliance with auto-enrolment (AE).
Removing liquidity restrictions would enable DC funds to capitalise on the potentially higher and safer returns that DB schemes have benefitted from, says Patrick Marshall.