NETHERLANDS - Three Dutch pension umbrella organisations have complained about a "seriously inadequate" law which has imposed health care deductions to the paid-out pensions of retirees living abroad.
The Dutch Association of Industry-wide Pension Funds (VB), together with Dutch corporate pension fund association OPF and the Unie van Beroepspensioenfondsen (UvB) for professional pension funds, complained about the law’s lack of clarity and failure of communication. In an open letter to Hans Hoogervorst, minister of Health, Welfare and Sport, they pointed to the difficulties faced by pension funds in the second pillar who are legally obliged to deduct the premiums of health care insurance from the pensions paid out to pensioners living abroad. Due to a recent judgement the health care contributions must be in line with the cost of health care in the country of residence.
For most of the countries the revised contributions are much lower than the original ones. Nevertheless the ministry wants pension funds to deduct the higher premiums.
The new law, enshrined within the framework of the care insurance law, has been effective since 1 January 2006.
VB said an earlier proposal put forward by the organisations to reach a solution which pensioners would find more comprehensible slid by the ministry, hence their decision to draw attention to the problem with an open letter. By Lisa Haines
The secretary of state for work and pensions has told MPs clawback and avoidance measures could be imposed for the people responsible for driving Carillion over the cliff.
Occupational pension provision has continued to grow in value, but there remains large variance in incomes across the pensioner age group, according to latest government data.
Defined benefit (DB) schemes could have an aggregate surplus by 2021 under Pension Protection Fund (PPF) projections, its strategic plan for 2018 to 2021 reveals.
Investment consultants are failing to recommend products that outperform net of fees, the Competition and Markets Authority (CMA) has said as its investigation into the market continues.