Pension Act
Since1st of January 2008 the new Pension Act (Pensioenwet) is effective. In the Pension Act various requirements for the financial structure and position of pension funds are laid down. The Pension Fund’s funding policy must comply with these requirement. Costs of the pension scheme These are annual costs required to finance pension entitlements accrued during the year in question. A contribution known as the 'actual contribution' is established to that end. In principle, this contribution is established every 3 years and currently amounts to 35.3%. When establishing the actual contribution, account is taken of a return on investment of 5.5%. |
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The contribution also includes a risk component, which follows from the Pension Law. (June 2010) Contributions The actual contribution is funded by the Employing Companies (the employers) and the participants in the pension scheme (the employees). The Regulations establish the maximum level of contributions to be paid by the participants; the remainder is paid by the employer. The Board may decide to reduce the level of contributions or to increase this if the financial situation of the Pension Fund so necessitates. The minimum level of contribution to be paid by employees amounts to 2% and that for the employer amounts to 5%. |
