The general board of the Dutch Federation of Pension Funds has approved the establishment of a new, independent dispute resolution body for pension funds.

Following the decision, preparations can begin for the creation of the body and pension funds are therefore a step closer to the introduction of the Future Pensions Act.

The Future Pensions Act stipulates that pension funds must join an external disputes body that will handle disputes between pension fund members and pension funds.

If a dissatisfied member cannot find a solution with their pension fund, they can turn to the independent body to find a resolution.

The new body will occupy a position of its own alongside the Financial Services Complaints Tribunal (Kifid), which will continue to handle complaints about financial service providers, such as pension insurers and premium pension institutions.

The Dutch Federation of Pension Funds said that a specific body for pension funds was the best way to handle future pension disputes, as a different legal regime applies to pension funds than insurers that also fall under the Future Pensions Act.

It added that pension funds have different issues to insurers when transitioning to a new pension system.

“Pension disputes require specific treatment, which also requires specific expertise,” the federation stated.

“An independent and impartial pension dispute resolution body best takes into account the interest of the participant in a pension fund.

“Another advantage is that this body is immediately clearly recognisable for participants in a pension fund.

“The body will deal with individual disputes about the implementation of the pension regulations by pension funds. The internal complaints process of pension funds is geared to this.

“This way the participant knows that their dispute will be handled in a professional and independent manner.

“This also includes the existing mediation process, signalling function and investigation options of the Pensions Ombudsman.”

The new dispute resolution body will be set up this year (2023), so that it can begin operations from 1 January 2024.

Share Story: