NETHERLANDS - The five-year recovery plans of Dutch pension schemes are estimated to shrink the country's future gross domestic product (GDP) by 0.75%, a report by De Nederlandsche Bank (DNB) said.
Pension funds in the Netherlands were required to submit recovery plans to the DNB detailing how they planned to reach the 105% minimum funding requirement through 2013.
Many schemes said they would increase premiums and remove or reduce cost of living adjustments, which could have a negative effect on consumers' purchasing power, the DNB said.
Meanwhile, employers have been pressured to make additional contributions into the schemes. "Such supplementary deposits may depress investment in fixed assets. The extent to which this inhibiting effect will occur, depends on the intended investment plans and the resources available to fund them," the bank said.
The DNB added: "It is still unclear whether the largest impact on GDP volume will occur at the beginning or at the end of the recovery period or whether the lower GDP volume will come about more or less gradually."
Over 340 schemes were forced to submit recovery plans as the global financial crisis slashed assets and funding levels.
Royal London saw its new group pension business decline over the first half of 2018 as the rollout of auto-enrolment (AE) drew to a close, according to its interim results.
Now Pensions has made "huge progress" in resolving legacy administration issues - switching systems and completing unit adjustment for a "large proportion" of members, it says.
Trustees of the Airways Pension Scheme (APS) will not make a firm decision on whether to appeal the Court of Appeal's judgment on discretionary increase payments until September.
Accountant Hashmukh Shah has pleaded guilty to deliberately providing false information to The Pensions Regulator (TPR) when stating a pension scheme had been set up for staff of a London-based restaurant.