NETHERLANDS - In a bid to give pensioners a greater say in policy matters, the Dutch pension fund giant PGGM has established the PGGM council, which will hold its first meeting today.
A PGGM spokesman said: “This is a step towards encouraging greater decision-making among pensioners. So far, pensioners did not have a very active role in policy-making of the fund. But with the establishment of this council, we hope to have greater pensioner participation.”
The number of pensioners in the PGGM counsel is six, with 18 other representatives of employee organisations.
The council, which comprises a participants’ council and an employers’ council, advises the board of governors on issues such as changes in pension regulations, adoption of the financial statements and increases to existing pensions.
“Establishing a participants’ council is the way in which PGGM has chosen to put the covenant it agreed with the various organisations for the elderly and the political world on the subject of co-determination rights into practice,” a fund statement said.
The participants’ council is also authorised to meet independently of the PGGM council.
The employers’ council has 24 representatives of the employers in the healthcare and social work sector.
The Pensions and Lifetime Savings Association (PLSA) has announced it will shrink its board by more than one-third as part of a governance overhaul to make it "agile and more appropriate".
Smaller FTSE 350 defined benefit (DB) schemes were nearly 15 percentage points less well-funded than larger schemes in 2017, according to a Goldman Sachs Asset Management (GSAM) analysis.
The advent of collective pension systems could help the UK avoid demographic challenges which will make it "impossible" for society to help savers in retirement, experts say.