Rule shock for Dutch final salary schemes

Wednesday 8 December 2004 at 16:00

Final salary pension schemes could disappear in the Netherlands as contribution rates become increasingly difficult to predict under new laws coming into effect on January 1, according to actuarial consultant Aon in Rotterdam.

The new pension fund law known as the FTK, or financial assessment framework, will oblige Dutch schemes to calculate liabilities using a fair-value basis which looks at obligations on their actual value rather than via any actuarial smoothing.