Pension funds don’t have to cut payouts: central bank
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Dutch pension funds will not have to cut payouts in order to improve their financial positions next year, the central bank said on Tuesday.
Although 155 of the 350 Dutch funds do not technically have sufficient assets to cover their obligations, the central bank has approved all but one fund’s plan to improve their finances.
Even though no payments to pensioners will be cut, just 20% of the funds will be able to put up pensions in line with inflation and two-thirds do not expect to be able to raise pensions until 2018.
The recovery plans can take a maximum of 12 years with the average fund requiring 6.5 years to restore its assets to the required 105% level, the central bank said.
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