The Netherlands, home to Europe's most cohesive retirement system, is facing a pensions crisis. It all sounds familiar: firemen on strike because they will have to work longer; trades unions bashing government's policy; widescale closure of final salary arrangements; uncertainty over occupational pensions.

As a result, the Dutch regulators are launching a new financial framework in 2006. They believe it will protect pension scheme members from investment risks that previously have not been appreciated or recognised by managers. However, the industry has doubts about the reform, with some claiming the plans could endanger the system.