NETHERLANDS - Fourteen Dutch pension funds will have to cut their pay-outs to pensioners before the end of the year, social affairs minister Piet Hein Donner has announced.
The reductions, which were backed by the central bank, will vary from 1% to 14% and will be introduced on January 1.
The hardest hit will be those who have already retired, as workers under the age of 65 still have time to make up the losses.
The bank refused to name the 14 affected pension funds under confidentiality guidelines.
The cuts are a direct result of Donner's decision to terminate an exemption measure for weak pension funds. He made the decision on the advice of the central bank because members of the 14 pension funds involved are receiving a pension that is not fully covered.
The pension funds have been hard hit by the economic crisis and several have seen their coverage ratio fall below the required 105%.
In 2009 it emerged that 340 of the 600 pension funds are short on coverage. Most of them think this can be solved by increasing premiums, no longer correcting for inflation or through financial help from employers.
The Pensions Regulator (TPR) has granted 11 master trusts extensions to apply for authorisation, as it confirms it has received 22 applications ahead of the 31 March deadline.
Aegon Master Trust, Fidelity Master Trust and Ensign have sent off their authorisation applications to The Pensions Regulator (TPR).
Self-administered pension funds spent £15bn on payments to pensioners in Q4 2018, but received just £12bn in contributions (net of refunds), Office for National Statistics (ONS) data reveals.
Aberdeen Standard Investments (ASI) and Gresham House are to team up to form a joint venture.