De Nederlandsche Bank (DNB) has approved six Dutch pension bridging plans, it has revealed.

Five industry-wide pension funds and one occupational pension fund submitted bridging plans for 2023 to DNB at the end of August. After an assessment in mid-October, DNB approved all six of the bridging plans.

During the transition period to the new Dutch pension system, a new transition financial assessment framework (FTK) has been created for schemes to use. One important element within this is the target funding ratio of at least 95 per cent, which is needed for an average fund to make a generationally balanced transition to the new system.

As part of this, DNB requires funds to formulate an annual bridging plan to demonstrate their ability to move across to the new required funding ratio of at least 95 per cent in sufficient time.

DNB said four important assessments of these bridging plans includes coverage ratio, governance, generational impact and model assumptions.

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