Principles for Pension Fund Governance The Netherlands Labour Foundation (Stichting van de Arbeid) has drawn up the Principles for Pension Fund Governance (Principes voor goed pensioenfondsbestuur) at the end of 2005. These principles have been agreed between the pension industry organizations (Stichting voor Ondernemingspensioenfondsen, Vereniging van Bedrijfstakpensioenfondsen and Verbond van Verzekeraars) and the senior citizens consultative body (Centrale Samenwerkende Ouderenorganisaties). Pension funds are required to comply with the above principles by no later than 1st January 2008. What does this entail?
Good pension fund governance means that the board of management is a professional body. |
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The Board ensures that the pension scheme is administered correctly and prudently. It is also important that all stakeholders feel as though they are represented in a balanced manner by the Board. In addition, the policy being pursued must be clear and transparent. Each year, the Board is required to account for its activities to an Accountability Council. This Accountability Council comprises representatives from the employers, employees and recipients of pension benefits. Finally, the Pension Fund must have internal supervision in place. In order to meet these requirements, the Pension Fund's Governance structure was amended in mid-2007. It is anticipated that the Accountability Council and Internal Supervision will commence work in the course of 2008. |
