Tag Archives: Rajish Sagoenie

Integrated risk management roundtable for Dutch pension funds

Milliman has organized a roundtable discussion to explore integrated risk management (IRM) for Dutch pension funds on Wednesday, 27 September 2017, in Amsterdam. While the Dutch National Bank (DNB) devotes a lot of attention to IRM and expects pension funds to have a structured approach, we find that many funds have difficulty formalizing one.

At this roundtable, Milliman consultants will discuss the following:

• What is IRM and what does it entail?
• What are common IRM strategies and policies for Dutch pension funds?
• How can the pension board perform a thorough risk assessment?
• How can the board ensure proper commitment to IRM?
• How can the board ensure adequate monitoring and evaluation?
• How can the board ensure that the DNB is satisfied with a funds’ IRM?

Seats are limited. If you would like to attend, email us here for more information.

Roundtable on UK defined benefit pension schemes

MBW International, a United Kingdom (UK) based joint venture between Milliman and Barnett Waddingham, has organized a roundtable discussion entitled “UK defined benefit pensions, a current overview: What can we learn in the Netherlands?” on Tuesday, 3 October 2017.

The roundtable is aimed at Dutch companies with a deficit in their UK defined benefit (DB) pension scheme as well as companies interested to learn more about the latest UK pension developments.

The roundtable will focus on the following topics:

  • An update on the UK pensions market and the impact it is having on Dutch companies – this will include recent analysis by the leading UK actuarial firm Barnett Waddingham LLP (the analysis will be distributed at the event).
  • Current market opportunities which could help companies tackle their UK pension problems, including:
  1. Changes to the way UK employees can access their pension savings that make it more attractive for them to transfer DB benefits into a defined contribution arrangement. This helps reduce the scale of the historic DB obligations.
  2. Continuing developments in the UK bulk annuity market.
  • What can we learn in the Netherlands from our UK counterparts?
  • Management of international pension plans – how can this be done in a more harmonized manner to increase efficiency, reduce risk, and achieve greater consistency across a business.

MBW International Directors Nick Griggs and Andrew Vaughan are guest speakers. Both Nick and Andrew have considerable experience dealing with these UK pension issues.

Seats are limited. If you would like to attend, email us here for more information.

Risk sharing within pension plans in the Netherlands

Sagoenie-RajishDutch pension system
Like many other European countries, the Netherlands operates a three-pillar pension system. This consists of:

1. A government-provided pension.
2. An employer-provided pension.
3. Personal pensions purchased through individual savings.

The first pillar, government pension, provides a basic income to retired people in the Netherlands. It is financed through taxes and is based on a pay-as-you-go system. The pension provided is linked to the country’s minimum wage. An amount of 2% of the state pension benefit is accrued for each year that an individual has lived or worked in the country until the age of 67, with a maximum period of 50 years taken into account. Depending on the increase in nationwide longevity, the age of 67 will increase.

The second pillar consists of occupational pension schemes. Companies offering their employees a pension plan are obliged to administer these plans externally via a pension fund or an insurance company. Funding for these schemes is provided through employer and member contributions and is based on capitalization. A majority of employers used to bear all the risk for these schemes but, in line with globally changing attitudes, there has been a move toward risk-sharing types of schemes. This pillar is discussed in further detail below.

The third pillar consists of annuities and pensions bought from individual savings. It is the main source of postretirement income for self-employed individuals and individuals working for organizations that do not provide a pension. To encourage people to make use of this pillar, tax incentives (within limits) are provided by the government.

In 2014 and 2015 the tax incentives in the second and third pillars were further limited. The annual salary on which the pension is based is limited to EUR 100,000.

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