The size and number of general pension funds (APF) in the Netherlands is smaller than was expected at the outset of the APF Act, according to WTW.

In an evaluation report on behalf of Deputy Prime Minister and Minister for Poverty Policy, Participation and Pensions, Carola Schouten, WTW noted that, in recent years, around half of liquidating funds have chosen to transfer their liabilities to an APF.

APF’s were introduced in the Netherlands in 2016 as consolidation vehicles for schemes that were ceasing operations.

The report, which the Dutch Pension Federation revealed has been submitted to the House of Representatives, also found that the retention of individuality has led to greater than expected ‘own circles’ rather than ‘multi-client circles’.

It also stated that, after joining an APF, stakeholder bodies usually consist of former board members of the pension funds that have consolidated.

Furthermore, the cost for APFs were found to be lower than for smaller and medium-sized company pension funds, although the cost reductions when joining an APF are smaller than expected in the initial years.

The evaluation report also highlighted some of the differences between APFs and other pension providers, such as mandatory ring fencing and the resistance capital.

The Dutch Pension Federation noted that, following Schouten’s letter, it appeared that the government’s further policy response to the report is expected to be sent to the House of Representatives in the summer.

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